Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 04/01/1997, Docket: RP97- 3-002, Status: Effective

First Revised Sheet No. 649 First Revised Sheet No. 649 : Effective

Superseding: Original Sheet No. 649

GENERAL TERMS AND CONDITIONS

(Continued)

18. ALLOCATION OF RECEIPTS AND DELIVERIES

18.1 In the event that gas is scheduled for any day to be received or

delivered by Pipeline in a commingled stream at Point(s) of Receipt or

Point(s) of Delivery other than those covered by an Operational Balancing

Agreement on Pipeline's system for the account of one or more Customers,

Pipeline shall: (a) accept allocated quantities provided by Customer based

on an Interconnect Daily Allocation ("IDA") as set forth in the provisions

of Section 18.1(A), (b) allocate quantities received or delivered based on

predetermined allocation methodologies ("PDA") as set forth in the

provisions of Section 18.1(B), or (c) in the event that the allocation

information as specified in the provisions of Sections 18.1(A) or 18.1(B)

is not provided, then Pipeline shall allocate actual quantities as set

forth in the provisions of Section 18.1(C) for Point(s) of Receipt and

Point(s) of Delivery.

(A) Interconnect Daily Allocation:

Each day Pipeline shall accept the allocation of actual gas

quantities received by Pipeline among all scheduled

quantities based on the information provided in such IDA.

An IDA shall mean Customer's installed capability at

Point(s) of Receipt to provide, or cause to be provided,

actual gas flow and final daily allocation information: (1)

in the same allocation form and level of detail set forth in

Section 18.1(B), (2) by 11:00 a.m. CT on the day following

the day of actual gas flow, and (3) for and binding upon

Customers tendering gas at such Point(s) of Receipt on such

day. Such IDA shall be provided at no cost to Pipeline.

Should Pipeline be required to make adjustments to its

system during the day of actual gas flow and such

adjustments affect total quantities received in a manner

that Pipeline would normally use a PDA, as defined in

Section 18.1(B), to determine the appropriate adjustments or

actions to be taken at Point(s) of Receipt with an IDA, then

at Pipeline's request Customer must provide or cause to be

provided, allocations during the day of actual deliveries to

Pipeline. If such requested allocations are not received

within two (2) hours, then Pipeline shall allocate

quantities at such point as set forth in the provisions of

Section 18.1(C). Pipeline's allocation in such event shall

be a final daily allocation with respect to 18.1(D).

(B) Pre-Determined Allocation:

Pipeline shall allocate on each day actual gas quantities

received or delivered by Pipeline among all scheduled

quantities based on the PDA submitted to Pipeline before the

start of such gas day by Customer or Customer's agent or the

upstream or downstream party responsible for custody

transfer (hereinafter called "Submitting Entity"). Parties