NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 06/01/1995, Docket: RP95- 14-001, Status: Effective

Original Sheet No. 316A Original Sheet No. 316A : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

24. ALLOCATION OF CAPACITY:

24.1 Order No. 636 Open Season. This section describes

the procedures to be utilized by Transporter in

assigning and allocating its transmission and storage

capacity pursuant to the implementation of services

under Order No. 636.

(a) No-Notice Transportation Service: Transporter

conducted a non-binding Open Season for requests

for service under Rate Schedule NNTS from March

3 to March 16, 1993. Consistent with the terms

of that Open Season, Transporter will assign

available no-notice capacity first to converting

firm bundled sales customers. In the event that

sufficient capacity does not exist to fulfill

all other requests for service, Transporter will

assign the remaining available capacity to the

request providing the greatest anticipated net

present value, utilizing the interest rate

prescribed in Section 154.67(c) of the

Commission's regulations as a discount factor.

Priority for requests having the same net

present value will be determined by a lottery.