NorAm Gas Transmission Company

Fourth Revised Volume No. 1

Effective Date: 01/01/1996, Docket: RP94-343-013, Status: Effective

First Revised Sheet No. 202 First Revised Sheet No. 202 : Superseded

Superseding: Original Sheet No. 202

GENERAL TERMS AND CONDITIONS

(continued)

Shipper furnishes delivery nominations for any Day

for physical deliveries in accordance with Rate

Schedules FT or IT as well as deliveries to Storage

Points of Injection for service under Rate Schedules

FSS or ISS, and Shipper or its designee fails to

provide adequate quantities of Gas to satisfy its

total delivery nominations, including Compressor

Fuel, for such Day, Transporter will allocate

quantities received in a manner such that nominations

for physical deliveries are fully satisfied first,

with any remaining quantities allocated to satisfy

the nominations for deliveries at Storage Points of

Injection, unless Shipper and Transporter agree to

another allocation method in the Service Agreement.

Transporter will provide such notification as may be

reasonable in the circumstances when the foregoing

allocation has occurred. If the delivery nominations

submitted by Shipper under this Section 5.5 and those

furnished by applicable Pool Managers under

Section 5.3 are inconsistent, such nominations may be

rejected by Transporter or, if accepted, the

nomination will be deemed to be the lowest common

quantity shown on the applicable nomination and

schedule. Subject to the requirements of Section 10,

all delivery nominations shall be prospective only

and may be used by Transporter for all purposes in

the scheduling and operation of Transporter's system

as described in this section, and Transporter shall

not be responsible or liable for taking action in

reliance on such nominations and as described herein.

(a) Delivery Nominations:

(i) Initial Nominations. Shipper shall

furnish, in a form acceptable to

Transporter, daily delivery nominations

each Month between 8:00 a.m. on the

fifteenth (15th) Day of the Month (if the

fifteenth is not a business day, then the

next following business day) and 10:00 a.m.

on the fourth (4th) business day prior to

the end of such Month, for all quantities

of Gas it desires Transporter to schedule