1. Gas Forum Proposed Process for UNC Modification Panel & Committee Elections

2. Agenda  Objective  Controls  4 Stage Process  Timeline

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

4. Controls  Single e-mail 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 e-mail)  No reliance on secondary nominations

5. Process Stage 1 - New Stage – Creation of an Electoral Roll  E-mail 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 e-mail  Company representative are clear  A distribution list will be established to ensure all SPoCs receive communications

6. Process Stage 2 - Nomination Process  Each SPoC is e-mailed requesting nominations for UNC Modification Panel and sub- Committees  Once nominations are received from each Shipper, nominees are e-mailed 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 e-mail address

7. 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 e-mailed with the details of the candidates. Advantages  Responses will only be accepted from the e-mail address of the Shipper election representatives  Regular reminders will go out to the distribution list

8. Process Stage 4 - Vote Counting Process  Votes will be counted by the e-mails received into the specific uncelections@gemserv.com mailbox uncelections@gemserv.com  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

9. 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 E-mail 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

10. 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) 20 7090 1030 or via email to gasforum@gemserv.com 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).