Shipper A Shipper B Shipper C New 50 MDth/d Firm Load MDO = 100 MDth/d CMQ = 80 MDth/d MDO = 200 MDth/d CMQ = 50 MDth/d Lateral capacity = 300 MDth/d Given: • Shipper A and Shipper B CMQ and MDO’s as stated above (no other shippers on lateral) • New Shipper C requesting firm 50 MDth/d load at a new delivery adjacent to Shipper A and Shipper B delivery points • Total of Shipper A and Shipper B MDO’s equal to lateral capacity Determine: • Shipper A and Shipper B MDO reductions to accommodate new Shipper C firm transportation request of 50 MDth/d Methodology: 1. Determine total MDO in excess of total CMQ. a. Excess MDO Shipper A = (100-80) MDth/d = 20 MDth/d; Excess MDO Shipper B = (200-50) MDth/d = 150 MDth/d b. Total Excess MDO Shipper A + Shipper B = (20+150) = 170 MDth/d 2. Determine total MDO available after 50 MDth/d firm transportation request. a. MDO Available after request = Total Excess MDO – Firm Transportation Request = (170-50) MDth/d = 120 MDth/d 3. Determine allocation of remaining MDO to Shipper A and Shipper B based on pro-rata CMQ a. Shipper A allocation of MDO in excess of CMQ = (CMQ Shipper A/Total CMQ)*Available MDO = (80/(80+50))*120 = 74 MDth/d b. Shipper B allocation of MDO in excess of CMQ = (CMQ Shipper B/Total CMQ)*Available MDO = (50/(80+50))*120 = 46 MDth/d 4. Determine new MDO’s for Shipper A and Shipper B (subject to the limitation that new MDO cannot exceed original MDO)

Shipper AShipper B Shipper C New 50 MDth/d Firm Load MDO = 100 MDth/d CMQ = 80 MDth/d MDO = 200 MDth/d CMQ = 50 MDth/d Lateral capacity = 300 MDth/d Given:

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Shipper A Shipper B

Shipper CNew 50 MDth/d Firm Load

MDO = 100 MDth/d

CMQ = 80 MDth/d

MDO = 200 MDth/d

CMQ = 50 MDth/d

Lateral capacity = 300 MDth/dGiven:

• Shipper A and Shipper B CMQ and MDO’s as stated above (no other shippers on lateral)

• New Shipper C requesting firm 50 MDth/d load at a new delivery adjacent to Shipper A and Shipper B delivery points

• Total of Shipper A and Shipper B MDO’s equal to lateral capacity

Determine:

• Shipper A and Shipper B MDO reductions to accommodate new Shipper C firm transportation request of 50 MDth/d

Methodology:

1. Determine total MDO in excess of total CMQ.

a. Excess MDO Shipper A = (100-80) MDth/d = 20 MDth/d; Excess MDO Shipper B = (200-50) MDth/d = 150 MDth/d

b. Total Excess MDO Shipper A + Shipper B = (20+150) = 170 MDth/d

2. Determine total MDO available after 50 MDth/d firm transportation request.

a. MDO Available after request = Total Excess MDO – Firm Transportation Request = (170-50) MDth/d = 120 MDth/d

3. Determine allocation of remaining MDO to Shipper A and Shipper B based on pro-rata CMQ

a. Shipper A allocation of MDO in excess of CMQ = (CMQ Shipper A/Total CMQ)*Available MDO = (80/(80+50))*120 = 74 MDth/d

b. Shipper B allocation of MDO in excess of CMQ = (CMQ Shipper B/Total CMQ)*Available MDO = (50/(80+50))*120 = 46 MDth/d

4. Determine new MDO’s for Shipper A and Shipper B (subject to the limitation that new MDO cannot exceed original MDO)

a. New Shipper A MDO = CMQ+Shipper A allocation of MDO = (80+74) MDth/d = 154 MDth/d. New MDO cannot be greater than existing MDO, implying new MDO Shipper A = 100 MDth/d (unchanged).

b. Therefore all MDO reductions will come from Shipper B. New Shipper B MDO = (200-50) MDth/d = 150 MDth/d