Discovery Gas Transmission LLC

Original Volume No. 1

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Effective Date: 10/01/2002, Docket: RP02-456-000, Status: Effective

First Revised Sheet No. 140 First Revised Sheet No. 140 : Effective

Superseding: Original Sheet No. 140



8.4 PREDETERMINED ALLOCATIONS - Transporter 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

Transporter and Operator must be agreed to in writing or by electronic

communication following the NAESB Standards before the first Day of the

allocation period in which the Predetermined Allocation method is to be



The Predetermined Allocation method must specify how the Gas measured at

a Receipt Point or Delivery Point is to be allocated for the account of

Shipper. The Predetermined Allocation method will either be ranked, pro

rata, percentage, or swing, as such terms are defined in the NAESB

standards. The Predetermined Allocation methods are available at any

point except those covered by an OBA.


If Operator and Transporter cannot agree upon an allocation method, pro

rata based upon confirmed nominations will be used as the default

method. The party responsible for custody transfer (the party

performing the measurement function) shall provide the allocation.


To the extent Operator submits a Predetermined Allocation method by

electronic communication, Transporter shall send a Quick Response, as

such term has been defined by NAESB, confirming the receipt of

Operator's selection of a Predetermined Allocation method.