Nautilus Pipeline Company, LLC

Original Volume No. 1

Effective Date: 12/01/1997, Docket: CP96-790-003, Status: Effective

Original Sheet No. 36 Original Sheet No. 36 : Effective

RATE SCHEDULE FT-2

FIRM TRANSPORTATION SERVICE

12. INCREASES IN CAPACITY con't

12.3 Requests for additional capacity shall be processed,

and capacity awarded, in accordance with Section 10 of

the GT&C of Transporter's Tariff on a first-come,

first-served basis. In the event that Transporter

conducts an open season pursuant to Section 12.2 of

this Rate Schedule all requests received under Section

12.1 of this Rate Schedule shall have a priority over

requests received during the open season.

12.4 If Transporter agrees to construct facilities to

accommodate Shipper's request for additional capacity

under Sections 12.1 and 12.2 and Shipper requires such

additional capacity prior to the date by which

Transporter has committed to complete the construction

of such facilities, then until such time as

Transporter's facilities are completed and available to

Shipper to ship its requested increased MDTQs,

Transporter shall release Shipper from that portion of

its Commitment related to the requested increase in

MDTQs.

12.5 If Transporter elects not to construct the facilities

necessary to satisfy the requests for increased service

to accommodate increased production from OCS Field(s)

already flowing Natural Gas through Transporter's

Pipeline Facilities, Transporter shall so notify

Shipper within thirty (30) Days of receipt of Shipper's

request, and, upon the request of Shipper, Transporter

shall permanently release from Shipper's Commitment

under its Rate Schedule FT-2 Service Agreement that

portion of the Natural Gas production from the specific

OCS Field that is the subject of the request for

increased capacity for which firm capacity on

Transporter's Pipeline Facilities is not available.

Such release shall become effective on the Day

following the Day Shipper requests the release from