Sabine Pipe Line Company LLC

Original Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-455-000, Status: Effective

First Revised Sheet No. 238 First Revised Sheet No. 238 : Effective

Superseding: Original Sheet No. 238



7.1 Allocation of Measured Receipts and Deliveries


Promptly at the end of each month, Sabine shall allocate the

daily quantity of gas measured at each Receipt Point and

each Delivery Point for the accounts of Shippers under each

Service Agreement. To the extent possible, all quantities

of gas measured at each Receipt Point and each Delivery

Point shall be allocated on the basis of Shipper's confirmed

nominations. In the event the quantities of gas measured at

any Receipt Point or any Delivery Point do not equal the

confirmed nominations for such point, the quantities of gas

measured at the Receipt Point or the Delivery Point shall be

allocated in accordance with the following methods and in

the following order: (1) under the provisions of an

Operational Balancing Agreement, (2) on the basis of a

predetermined allocation, or (3) pro rata on the basis of

confirmed nominations. At a location, the total quantity

measured or estimated for the period will be used to provide

allocations to parties' scheduled transactions (or otherwise

identified transactions consistent with NAESB WGQ Standard

2.3.61). In the allocation process, estimated quantities

will be adjusted to actuals following the time that the

actuals are known.


7.2 Operational Balancing Agreements


Sabine is willing to negotiate and execute an Operational

Balancing Agreement (OBA) with any Operator for the purpose

of minimizing operational imbalances or other matters with

respect to the receipt of gas into or the delivery of gas

from Sabine's System. The OBA shall specify the gas custody

transfer procedures to be followed by Sabine and the

Operator for the confirmation of nominated quantities and

allocation of quantities of gas measured at the point(s) of

interconnection between Sabine and the Operator. The OBA

will provide that any variance between quantities of gas

measured and confirmed nominations for any day shall be

promptly resolved in-kind. To facilitate the determination

of variances on a timely basis, Sabine and the Operator will

agree upon necessary measurement, allocation and accounting

procedures and set forth such procedures in the OBA. Sabine

will post