Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 04/01/1998, Docket: RP98- 85-000, Status: Effective

Third Revised Sheet No. 190 Third Revised Sheet No. 190 : Effective

Superseding: Second Revised Sheet No. 190

GENERAL TERMS AND CONDITIONS

(continued)

5.2 Receipt Nominations and Allocation Methodology.

Except as otherwise provided in this Tariff, and

subject to Section 5.2(e) of these General Terms and

Conditions, Shipper shall furnish receipt

nominations to Transporter for all quantities of Gas

Shipper desires Transporter to receive, including

applicable Compressor Fuel retentions. All

nominations shall be prospective only, and must be

made electronically except during emergency events

as provided in Section 22.9 of these General Terms

and Conditions. Transporter may rely on such

receipt nominations for all purposes and shall not

be responsible or liable for disputes arising from

such nominations or actions taken in accordance with

this section. At a physical Receipt Point, unless

there is an operational balancing agreement in effect

one of the standard allocation methodologies, inter

alia, will be determined in accordance with GISB

Standards after or during confirmation and prior to

gas flow. Pursuant to GISB Standard 2.3.16, the list

of allocation methodology types is as follows:

A. ranked;

B. pro rata;

C. percentage; and

D. Swing.

The types of allocation methodologies is a list from

which two parties may agree. If the two parties

cannot agree upon an allocation methodology, pro

rata based upon confirmed (and scheduled) nominations

is the default method, and the primary measuring

party will provide the allocation using such

methodology. Only one pre-determined allocation

methodology should be applied per allocation period.

Transporter and Operator may memorialize their pre-

determined allocation methodology agreement by

entering into a Predetermined Allocation Agreement

in the form beginning on Sheet No. 348 of this Tariff,

provided that such Operator is pre-qualified for

creditworthiness purposes pursuant to Section 14.5

below. If a Shipper names one or more Pools as

Receipt Points under its Service Agreement, its

receipt nominations shall consist of a designation by