NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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

First Revised Sheet No. 206 First Revised Sheet No. 206 : Superseded

Superseding: Original Sheet No. 206

GENERAL TERMS AND CONDITIONS

(continued)

Nominations for which capacity is not available

will be treated as withdrawn.

(e) Billing: If the quantities nominated and

confirmed at Receipt Point(s) for receipt and

transportation to a Delivery Point exceed the

quantities actually taken by Shipper at such

Delivery Point, Transporter, for billing

purposes, shall deem the quantities delivered as

having been transported from the Receipt

Point(s) which result in the highest rate(s).

(f) Priorities: It is recognized that Transporter

may not have sufficient capacity either

systemwide or on a particular segment of its

system to provide all service for which

nominations have been received under this

Section 5.5.

(i) Service under a firm Service Agreement on

any Day shall be scheduled, consistent with

applicable Contract Limitations, as

follows:

(1) for firm transportation requested at a

given Point of Delivery, the highest

priority will be afforded Shippers

under Rate Schedule NNTS which have

designated such point in their Service

Agreement and Shippers under Rate

Schedule FT which have designated in

their Service Agreement such point as

a Primary Point of Delivery; and

(2) the next highest priority will be

afforded to Shippers which have

designated such point as a Secondary

Delivery Point. In the event

sufficient capacity does not exist to

schedule all nominations submitted

qualifying for this priority category,

capacity will be allocated on a pro

rata basis based on each Shipper's

nomination.