Stefan Leedham 22 November 2007 MEASUREMENT ERROR NOTIFICATION GUIDELINES FOR NTS TO LDZ METERRED OFFTAKES AND LDZ TO LDZ METERRED TRANSFERS Stefan Leedham 22 November 2007

OVERVIEW Background to 131 Review Group Outputs of 131 Review Group Information Provision Role of the Offtake Committee and Shippers Independent Experts

OUTPUTS OF 131 REVIEW GROUP The 643 Notification Process duplicated a lot of discussions that would already have occurred Introduce concept of significant meter error process Increased transparency would be beneficial The OAW and Offtake Committee to discuss meter error report No potential to delay the process for commercial gain in light of 126 review group Avoid need for expert determination

INFORMATION PROVISION On identification of measurement equipment error downstream Transporter to provide information on error: Location of measurement equipment Relevant LDZ Brief description of error and cause Date when error discovered Duration of the error Estimate of the total energy in error and total volume Impact of the measurement equipment error (credit or debit) Average flow rates Anticipated Meter Error report publication date Contact details Information updated at least every 21 business days via Joint Office

ROLE OF THE OFFTAKE COMMITTEE For meter errors greater than 50GWh OAW to provide forum for discussion Downstream Transporter to provide updates to the OAW Shippers able to use the OAW to raise issues and questions Downstream Transporter to respond to issues and answers Sub-committee can be formed to discuss error further on request Updates to continue to be provided until MER completed and ready to be submitted for reconciliation Discussions limited to technical issues

INDEPENDENT EXPERTS For significant errors tendency for an expert to be appointed Offtake Committee to appoint an independent expert to construct MER Expert to report to Offtake Committee and provide reports to relevant forum Expert to decide on appropriate methodology to be employed Expert to take decision on when MER completed and ready to be submitted for reconciliation Final meeting held to discuss outputs of MER and address any final issues Need for dispute process removed for significant meter errors

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