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. 2501 Original Sheet No. 2501 GENERAL TERMS AND CONDITIONS Section 13 (Cont'd) (e) If the party owning processing rights to gas received by Texas Gas for transportation service hereunder elects to process such gas during any month, then the operator of the processing plant where the gas will be processed must provide Texas Gas with the estimated shrinkage percentage applicable to such gas. The gas quantity available for transportation by Texas Gas and subject to the PDA, shall be all gas received after reduction for the estimated shrinkage applicable to processing. (f) If Operator of a processing plant elects to transport gas quantities to their processing plant for the purpose of in-kind PVR replacement, then such transportation agreement shall not be identified to take all, over- or under-deliveries in a PDA at any receipt point which it is utilizing for transportation service. (g) For parties not submitting PDA's via EDM, there is a proposed PDA form available in the Forms section of Texas Gas' Internet Website. Parties are required to use this form, or such other format as the parties may agree to in writing, and submit prior to end of the gas day. On such form the party submitting the PDA shall identify the method(s) for allocating daily overages and underages from the confirmed nominations among the operator or producer or upstream or downstream Customer of the gas identified on the form. Such form shall also specify the effective date of such predetermined allocation. Such PDA when submitted shall be binding as between Texas Gas and the party submitting the PDA. (h) Both Texas Gas and the parties submitting the PDA recognizes that to the extent they have control, they will take the appropriate steps so that the volumes actually received or delivered by Texas Gas at the Interconnection Point(s) identified on the PDA will equal, to the extent reasonably possible, the confirmed nominations. Any overage or underage should be inadvertent. It is intended that the PDA will work in conjunction with, and in no way replace, the normal communications between the parties to confirm gas nominated for delivery or receipt at the applicable Interconnection Point. (i) Texas Gas shall not have any liability to any Customer, or any other party to a PDA, as a result of Texas Gas' reliance or any allocation methodology described herein, and such parties shall indemnify Texas Gas from and against any and all losses, damages, expenses, and claims, as a result of Texas Gas' reliance on such allocation methodology.