Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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

First Revised Sheet No. 201A First Revised Sheet No. 201A : Effective

Superseding: Original Sheet No. 201A

GENERAL TERMS AND CONDITIONS

(continued)

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 the

entity which controls the facilities immediately

downstream of such Delivery Point may memorialize

their pre-determined allocation by entering into a

Predetermined Allocation Agreement in the form

beginning on Sheet No. 348 of this Tariff, provided

that such entity is pre-qualified for creditworthiness

purposes pursuant to Section 14.5 below. All Shippers

(except Shippers under Rate Schedule NNTS) desiring

service shall furnish delivery nominations for the

quantities of Gas each Shipper desires to have

scheduled for delivery by Transporter. Delivery

nominations shall be made electronically except during

emergency events, as provided in Section 22.9 of these

General Terms and Conditions, and shall consist of a

designation by Shipper as to the quantity of Gas it

desires Transporter to tender at a particular Point of

Delivery under its Service Agreement for any given

Day, the individual Point(s) of Receipt or Pool(s) and

corresponding suppliers from which such Gas will

originate, and the quantity from each such source. In

the event that a