Reyna and I have reviewed and discussed your question and provide the following as guidelines for allocating storage:

Allocate storage during the Timely, Evening, Non-Grid, and IntraDay 1 cycles whenever net scheduled storage activity exceeds the operational capacity by more than 500 MMBtu.
Allocate storage during the IntraDay 2 Cycle if a storage allocation was performed during any of that gas day's earlier cycles (using the 500 MMBtu Rule) or when there were no previous storage allocations were performed during the gas day but the net scheduled storage activity for the IntraDay 2 cycle exceeds operational capacity by more than 5,000 MMBtu. 

If you have any additional questions, please advise.

 -----Original Message-----
From: 	Buchanan, John  
Sent:	Wednesday, July 18, 2001 10:03 AM
To:	Bodnar, Michael; Neville, Sue
Cc:	Kowalke, Terry; Wilkens, Jerry; Forbish, Sherry; Blair, Lynn
Subject:	

Customer Service Reps. have requested from the Storage Group some allocation guidelines to follow as to when to call Storage on whether or not to allocate storage. For example if only 4,000 DTH needs allocated do we allocate or do we call to see if storage wants to lift the allocation. Can you provide us with some guidelines to follow even if it for us to allocate no mater how much is over capacity, that information would eliminate some concerns the Customer Service Reps. have.

Thanks: John Buchanan