Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

Effective Date: 05/01/1997, Docket: RP97- 61-002, Status: Effective

Second Revised Sheet No. 127 Second Revised Sheet No. 127 : Effective

Superseding: First Revised Sheet No. 127

RATE SCHEDULE PS

POOLING SERVICE

(continued)

and accept nominated and scheduled outgoing Pool

Transfer quantities in a manner such that

Undersupplies are maintained in the outgoing Pool

("in-whole" basis). In the event of a curtailment,

as provided in Section 10 of the General Terms and

Conditions of this Tariff, Transporter will curtail

nominated and scheduled Pool Transfers prior to

curtailments of physical deliveries to Transporter.

2.4 Imbalances. Imbalances in a Pool are calculated by

determining the difference between total aggregated

receipts into the Pool and the total deliveries

allocated out of such Pool. In the event of

Oversupplies or Undersupplies in a given Pool, the

Service Agreement under which the pooling service is

rendered will have an Imbalance for each individual

Pooling Area, as applicable. Monthly Imbalances for

different Pooling Areas under Pool Manager's Service

Agreement may be offset against one another if Pool

Manager pays a fee or charge as described in Section

5.7(c)(ii)(3) of Transporter's General Terms and

Conditions, and otherwise complies with the

requirements of such sub-section. Pool Managers can

resolve Imbalances during the Month by revising

nominations , subject to the availability of capacity

and operational conditions. Any Imbalance remaining

at the end of a Month shall be cashed-out in

accordance with the provisions of Section 5.7(c)(ii)

of Transporter's General Terms and Conditions.

2.5 Performance. Transporter shall not have any

liability to a Pool Manager or any other Shipper as a

result of Transporter's reliance on the performance

by a Pool Manager of its obligations hereunder, and

each Pool Manager shall indemnify Transporter from

and against any and all losses, damages, expenses,

claims, actions or proceedings threatened, incurred

or initiated as a result of Transporter's reliance on

such performance.

2.6 Creditworthiness. Pool Managers or potential Pool

Managers shall be required to comply with the

provisions of Section 14 of the General Terms and