Questions on MDQ

Ranelle, John and Michelle, thought I would send this statement to you and see if this
helps simplify our answer to your question.

The question is: How is MDQ used in the nomination system to ensure we do not
double up on MDQ volumes when we have split paths (i.e. nom on same contract
from (1) Mid 15 to Bushton Inlet and from (2) Bushton Outlet to Demac)

For Nominating purposes:

MDQ of contract = Primary Firm + Alternate Firm up to the MDQ.
Anything over the MDQ will be Overrun and charged at the IT rate.

Point MDQ needs to be considered when allocating a receipt point.

EXAMPLE:

If the Field MDQ is 10,000, then we will (1) total the reciepts nominated on the
contract; (2) compare the total nominated to the Contract MDQ. Then the shipper
will get firm (primary and alternate) up to their contract MDQ. Anything over will be
overrun at IT rate.

If anyone has any other questions, please let me know. Thanks. Lynn