Texas Gas Transmission, LLC

Third Revised Volume No. 1

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

Original Sheet No. 2500 Original Sheet No. 2500 GENERAL TERMS AND CONDITIONS Section 1313. Allocations 13.1 Predetermined Allocation At all points of Receipt and Delivery that don't have Operator Level Operational Balancing Agreements in place or at pooling and/or storage points, Texas Gas will require Predetermined Allocation. PDAs will allow Texas Gas to allocate all gas receipts and deliveries on a daily basis and to provide such daily operating information to Customers on its system. PDAs will be with the operator of the facility immediately upstream or downstream at the point which Texas Gas delivers or receives gas. In addition to PDAs with operators of interconnecting facilities, Texas Gas will accept PDA's from the first level upstream identifier in the nominations at receipt points. Each Customer shall be responsible for ensuring that its suppliers submit PDAs as provided herein. All PDAs must be submitted to Texas Gas after or during confirmation but prior to the end of the gas day via EDM or Fax and set forth the methodology for daily allocation of confirmed gas quantities of those entities when the allocator has the right to allocate. Such PDA shall specify how any daily underages or overages from the confirmed nominated quantities should be allocated among the entities listed. Only one PDA methodology per party per point will be accepted for an allocation period. The PDA will not become effective unless Texas Gas has confirmed the nominated receipts and deliveries. (a) Properly executed PDAs will be assumed to be accepted by Texas Gas when submitted, unless Texas Gas notifies such party within 24 hours via EDM or Fax that such allocation can not be administered. (b) A PDA will be effective as of the date specified therein (which may not be earlier than the date on which the confirmed quantities are to flow) and will continue in effect through the ending flow date unless the PDA party submits a new PDA prior to that time that is accepted by Texas Gas. PDAs may be submitted to Texas Gas on any gas day during the month. Parties submitting PDAs shall be responsible for keeping the entities for whom the party is submitting the PDA informed as to the contents of the PDA. (c) After the end of each month, Texas Gas shall make available to each party submitting an effective PDA with a monthly allocation summary showing the daily gas quantities allocated in accordance with such PDAs. No retroactive changes to the PDA may be made unless Texas Gas and all parties affected by such retroactive change to the PDA agree in writing. (d) In the event Texas Gas is utilizing its upstream capacity in other pipelines to transport gas for a Customer, the PDA or allocation methodology, if any, of those upstream pipelines shall provide the first level PDA applicable to such upstream transportation.