Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Superseded

Original Sheet No. 1102 Original Sheet No. 1102 RATE SCHEDULE PAL (cont'd) transactions unless Buyer and Texas Gas mutually agree to utilize a different Point of Service.5. Nominations and Scheduling Customer shall notify or cause Texas Gas to be notified of Customer's service requirement under this Rate Schedule in advance of such requirements in accordance with the nomination deadlines as provided in Section 12 of the General Terms and Conditions of Texas Gas' FERC Gas tariff. Texas Gas, in its sole judgment, may waive any nomination deadlines, on a non-discriminatory basis, if Texas Gas determines that operating conditions permit. With respect to Customer's desired levels of service under this Rate Schedule, Customer shall nominate to Texas Gas the desired Parking and/or Loan quantities as well as the point at which such service is requested. Such nominated quantities shall be subject to confirmation by Texas Gas. Such confirmed quantity shall be deemed the scheduled quantity. Customer and Texas Gas shall have scheduling personnel available to be contacted 7 days a week, 24 hours a day.6. Allocation of Service In allocating or curtailing service among Customers under this Rate Schedule, Texas Gas shall give service priority based upon the highest unit Parking or Loan rate paid (not to exceed the maximum rate for such service under this Rate Schedule). Service will be allocated on a pro-rata basis among Customers willing to pay the same unit rate for such service.7. Notification from Texas Gas 7.1 Customer may be required, upon notification from Texas Gas, to cease or reduce deliveries to, or receipts from, Texas Gas' Parking and Loan service within the gas day consistent with Texas Gas' operating conditions. Further, Customer may be required to return loaned quantities or remove parked quantities upon notification by Texas Gas. Such notification may be by written communication, telecopy, telephone or EBB posting. Texas Gas' notification shall specify the time frame within which parked quantities shall be removed and/or loaned quantities shall be returned, consistent with Texas Gas' operating conditions, but in no event shall the specified time frame be less than three (3) calendar days from the date of Texas Gas' notification. 7.2 Any parked quantity not removed within the time frame specified by Texas Gas' notice shall become the property of Texas Gas at no cost to Texas Gas, free and clear of any adverse claims. Such gas retained by Texas Gas shall be credited back to the customers through Texas Gas' annual fuel tracker. Any loaned quantity not returned within the time frame specified by Texas Gas' notice shall be sold to Customer at 150% of the highest weekly average price for the month as determined pursuant to Section 14 (g) of the General Terms and Conditions of Texas Gas' FERC Gas Tariff.