Gas Forum Proposed Process for UNC Modification Panel & Committee Elections

Agenda  Objective  Controls  4 Stage Process  Timeline

Objectives UNC Elections  To ensure that the processes and controls pertaining to the nomination and election process are:  robust;  auditable;  transparent; and  simple

Controls  Single address for all election related contact (with Alternate)  Use of Read Receipts  Creation of an Electoral Role  Single Point of Contact (SPoC)for each Shipper (with alternate in case of absence)  Double verification by Senior Manager and MT member  No paper/fax (signatures will be electronic and verified by individuals named company )  No reliance on secondary nominations

Process Stage 1 - New Stage – Creation of an Electoral Roll  is sent out via the Joint Office to all Shippers asking them to nominate an individual (and alternative) who will be a Shipper representative ‘Single Point of Contact’ (SPoC) to place on the electoral roll who will receive nomination and election details.  Should the SPoCs be published? Advantages  Each corporate group holding more than one Shipper licence should nominate a SPoC (and alternate). In the case that too many representatives are put forward, Gemserv will ask the Shipper to agree on SPoC 1 + alternate  Only requires JO to send one  Company representative are clear  A distribution list will be established to ensure all SPoCs receive communications

Process Stage 2 - Nomination Process  Each SPoC is ed requesting nominations for UNC Modification Panel and sub- Committees  Once nominations are received from each Shipper, nominees are ed to confirm that they understand the requirements of the role and that they will be representing the interests of shippers rather than their employer Advantages  Removed the requirement for nominations to be seconded – not clear benefit of this and can add more time to process  Regular reminders send to all representatives rather than individuals being chased  All nominations put forward must include the individual’s company address

Process Stage 3 - Voting Process  Assuming an election is required (for either UNC Panel/Committee or EBCC) all SPoCs on the Electoral Roll will be ed with the details of the candidates. Advantages  Responses will only be accepted from the address of the Shipper election representatives  Regular reminders will go out to the distribution list

Process Stage 4 - Vote Counting Process  Votes will be counted by the s received into the specific mailbox  Internal controls will ensure votes are verified twice, by senior manager and then member of Gemserv’s management team Advantages  All votes will be received into one mailbox and not by fax  All votes will be confirmed  Regular reminders will go out to the distribution list when voting deadline is approaching  Double verification process

Timeline 01/10/2009 Preparation for VotingVoting Verification Key Tasks Page1 Election Timeline Creation of the Electoral Roll Stage 1Stage 3 Stage 4 Wk 27 to Wk 29 Wk 30 to Wk 32 Wk 34 to Wk 36 Wk 36 to Wk 40 June July August September is sent out via JO to all Shippers asking them to nominate an individual (and alternative) who will be a Shipper representative to place on the electoral roll. Nominations Stage 2 Vote Counting Voting Process Shipper Representative is mailed requesting nominations for UNC Modification Panel and sub-Committees Assuming an election is required, the Shipper reps on Electoral Roll will be e- mailed with the details of the candidates. Votes will be counted. Votes are verified twice

Shipper Groups Determining Shipper Groups This provides Parties with an explanation of a Shipper group. It can assist Parties to determine if they are within a Shipper group so they can accurately inform the Gas Forum of this status during the UNC election process. This is based on information provided in the Companies Act 1985, and a Shipper’s Company Secretary is in the best position to determine whether that Party belongs to a Shipper group. Queries regarding your status as a trading party group should initially be directed to your Company Secretary. Further information is available from the Gas Forum office on +44 (0) or via to Introduction Shipper s elect UNC User Panel Members to the UNC Modification Panel/Committees in accordance with the UNC. Elections are held annually. Shipper Parties may nominate candidates for election to the UNC Panel/Committee and each of the sub-committees. During any election, each Shipper Party can submit one vote. If a Shipper is part of a Shipper group, ONLY ONE Party in that group can vote in the elections. What is a Shipper Group? A Shipper group is a group comprised of a Shipper and every Affiliate of that Shipper. An “Affiliate” is: any holding company of that Party, any subsidiary of that Party or any subsidiary of a holding company of that Party, (within the meaning of sections 736, 736A and 736B of the Companies Act 1985). A Shipper will be in a Shipper group with all other Shippers that are its Affiliates. This means, all other Shipper who are: a subsidiary company of the Shipper; the holding (parent) company of the Shipper; or a company which is a subsidiary of the same holding company as the Shipper. For more information on the different definitions of a Company please refer to Clause 736 of the Companies Act 1985 (amended by the Companies Act 1989).