Caprock Pipeline Company

First Revised Volume No. 1

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Effective Date: 08/01/1999, Docket: RP99-398-000, Status: Effective

Second Revised Sheet No. 21 Second Revised Sheet No. 21 : Effective

Superseding: First Revised Sheet No. 21

(A) Rate Schedule FS - On any day on which Shipper delivers

gas to Caprock, under Rate Schedule FS, redeliveries of gas to

Shipper shall be deemed to be undertaken pursuant to Rate Schedule

FS up to the full volume of FS service nominated by Shipper for

that day, prior to any redeliveries of gas transported under any other

Rate Schedule.

(B) Rate Schedule IS - On any day on which Shipper

delivers gas to Caprock under Rate Schedule IS, redeliveries of gas

to Shipper shall be deemed to be undertaken pursuant to Rate

Schedule IS only after delivery by Caprock of the full volume of gas

transported on that day under Rate Schedule FS.


11.2 This section applies to the allocation of aggregate

delivery point capacity, individual delivery point capacity,

mainline segment capacity and redelivery capacity when the

daily nominated volumes for any of these points exceeds the

point's capacity. Rate Schedule FS Shippers will have the

capacity at the point allocated based upon each Shipper's

total contract demand compared to the total demand of all FS

Shippers requesting capacity at that point. If there is

capacity available at that point after FS Shippers have been

satisfied, then IS Shippers will have the capacity allocated

with service to such Shippers interrupted beginning with the

first to occur of the following:


(A) the queue priority as determined in Section 12.

(B) the lowest total price per unit, including without

limitation fuel and shrinkage adjustments, paid for

interruptible service.


11.3 Caprock will enter into mutually acceptable pre-determined

allocation agreements with upstream and downstream operating parties

to accommodate allocation of flows among Shippers at any receipt or

delivery point. Caprock and the operating parties should agree on

who submits a pre-determined allocation methodology and who

allocates at the point before gas flows. Only one pre-determine

allocation methodology can apply per allocation point. The upstream

or downstream party providing the point confirmation should submit

the pre-determined allocation to the allocating party after or

during confirmation and before the start of the gas day. The

allocating party will send back a confirmation of the receipt of

the pre-determined allocation within fifteen minutes. The types of

allocation methodologies from which the parties may agree are ranked,

pro-rata, percentage, swing and operator provided value. If Caprock

and the upstream or downstream operating party cannot agree upon an

allocation methodology, pro-rata based upon confirmed

nominations shall be used as the default method. The party

responsible for custody transfer (the party performing the

measurement function) shall provide the allocation.