Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 139 Original Sheet No. 139 : Effective








(a) The operator of facilities immediately downstream

of a Delivery Point which has physical control of the volumes taken

away from Horizon and is willing to take responsibility for

disposition of the volumes it receives from Horizon has the option

to elect a predetermined allocation pursuant to this Section 9.3.

Allocation agreements under this Section 9.3 may apply to physical

Delivery Points, to Central Delivery Points or to other point

groupings mutually agreeable to Horizon and the point operator. To

perfect such an election, such point operator must execute a Point

Operator Allocation Agreement which adheres to the delivery

sequences set out herein, except as such sequence may be modified

by mutual agreement between Horizon and the point operator, and

which covers deliveries under all Agreements pursuant to which gas

is delivered by Horizon at the point other than those specifically

excluded by mutual agreement of Horizon and the point operator

(Applicable Agreements).


(b) In the event that volumes delivered by Horizon

under Applicable Agreements at any Delivery Point equal or exceed

the sum of confirmed nominations at such point on any day, the

delivery sequence for that day shall be as follows:


(1) First, confirmed nominations under all

Applicable Agreements shall be deemed delivered for that day;

provided, however, that volumes deemed delivered for that day are

subject to adjustment.


(2) Volumes equal to up to the percentage of the

confirmed nominations under step (1) which corresponds to the

percentage for the Balancing Service Charge tier under Section 10 of

these General Terms and Conditions for which no additional charge is

assessed under then prevailing circumstances are the next volumes

deemed delivered on any day (which absorbs any allowable balancing

service provided without additional charge under Section 10 of these

General Terms and Conditions) and are allocated to the point

operator's account, but volumes shall be deemed delivered to the

point operator's account only to the extent necessary to account for