Crossroads Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/2001, Docket: RP02- 14-000, Status: Effective

Original Sheet No. 109 Original Sheet No. 109 : Superseded





8.3 Predetermined Allocation Method (PDA).

(a) As used in this Section 8, a PDA is an agreement by or among point operators, prior to the

beginning of the Gas Day, at a receipt or delivery point to allocate the difference between the scheduled

daily quantity and the actual daily flow of gas in a mutually agreeable manner. Types of allocation methods

include, but are not limited to, Ranked, Pro Rata, Percentage, Swing, and Operator Provided Value. If the

two parties cannot agree upon an allocation methodology, pro rata based upon confirmed nominations shall be

used as the default method. PDA's shall be provided by the interconnecting operator, and for multi-tiered

allocations, may be provided by the upstream titleholders or shippers. Interconnecting operators at receipt

locations shall provide a PDA to allocate to upstream titleholders. Upstream titleholders may provide a PDA

to allocate to the parties taking possession of their gas at a receipt location. Shippers may provide a PDA

to allocate to their nominations at either receipt or delivery locations.

(b) Except as prescribed in Section 8.1(a) of the General Terms and Conditions, if confirming

parties cannot agree upon an allocation methodology, "pro rata based upon confirmed nominations" shall be

used as the default method.

(c) Transporter may negotiate and enter into OBAs with interstate pipelines, intrastate pipelines

and other entities, including an OBA in the form included in this Tariff. No Difference balanced in-kind

shall be allocated to any Shipper at the receipt or delivery points covered by the OBA. If an interstate

pipeline charges Transporter for Differences in the OBA, however characterized, Transporter shall charge

such interstate pipeline an equivalent and offsetting charge. If Transporter is unable to charge or collect

such equivalent and offsetting charges for such Differences, Transporter, on an as-billed basis, shall

allocate and bill such charges to Shippers responsible for the imbalance at the point of interconnection at

which the Difference giving rise to the charges occurred.

(d) Where an OBA exists between interconnecting parties, a PDA is not necessary.

(e) Changes to a PDA may be made prospectively during the Month. Only one PDA may be submitted

per allocation period. Transporter may in its reasonable discretion make retroactive reallocations of

transactions to correct for errors. Otherwise, no retroactive reallocations of any transactions shall be

permitted without the approval of Transporter and the agreement of those Shippers with Service Agreements

affected by such retroactive reallocations, provided that the agreement by such affected Shippers shall not

be unreasonably withheld.