Sabine Pipe Line Company

Second Revised Volume No. 1

Effective Date: 07/31/1993, Docket: RS92- 78-003, Status: Effective

Original Sheet No. 239 Original Sheet No. 239 : Superseded

on its electronic bulletin board the Receipt Points and

Delivery Points where an OBA governs the allocation of

quantities of gas measured.

7.3 Eligibility for an Operational Balancing Agreement

Sabine shall negotiate and execute OBAs on a non-

discriminatory basis with any Operator provided that

Sabine shall not be obligated to negotiate and execute

OBAs with any Operator that:

a) is not credit worthy as determined pursuant to

Section 9 of the General Terms and Conditions;

b) does not maintain, or have available, dispatching

operations that are staffed on a continuous basis;

c) does not have electronic flow measurement

equipment to which Sabine has access at the

interconnect point(s) for which an OBA is

proposed;

d) would subject Sabine to an increase in operating

costs to operate electronic flow measurement or

flow control equipment; or

e) does not commit to timely and final determination

of variances based on prompt in-kind resolution.

7.4 Predetermined Allocations

Sabine is willing to negotiate and establish a

predetermined allocation methodology with any Operator

for the purpose of allocating quantities of gas

measured at any Receipt Point or any Delivery Point in

the event the quantities of gas measured do not equal

the confirmed nominations for such point. Unless

otherwise agreed, all predetermined allocation methods

established between Sabine and Operator must be agreed

to in writing on or before the first day of the month

in which the predetermined allocation is to be

effective and shall continue through the end of the

calendar month. Acceptance of the predetermined