Nautilus Pipeline Company, LLC

Original Volume No. 1

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

Original Sheet No. 45 Original Sheet No. 45 : Effective

RATE SCHEDULE FT-3

FIRM TRANSPORTATION SERVICE

3. COMMITMENT con't

3.6 If Shipper submits its production profile and requested

MDTQs to an independent engineering firm in accordance

with Section 3.5 of this Rate Schedule and, upon

receipt of the binding engineering report Shipper

believes that the MDTQs set forth therein are

inadequate to permit delivery of all of Shipper's

Natural Gas production from the OCS Field(s) and

Leasehold Interest(s) committed to its Rate Schedule

FT-3 Service Agreement, then, upon Shipper's request,

Transporter shall offer to Shipper a service agreement

under Rate Schedule FT-1 for the incremental MDTQs that

Shipper requests. Except where Shipper becomes a

Replacement Shipper through the capacity release

programs available under this Rate Schedule and Rate

Schedules FT-1 and FT-2, only in this limited

circumstance may Shipper receive an FT-1 Service

Agreement for production included within the OCS

Field(s) identified on Exhibit "A" to its Rate Schedule

FT-3 Service Agreement. Any such FT-1 Service

Agreement shall be for a term of not less than one

year, shall have the same Contract Year as the Rate

Schedule FT-3 Service Agreement covering production

from the same OCS Field(s), and shall establish a rate

equal to the rate charged for service under the

Shipper's Rate Schedule FT-3 Service Agreement covering

production from the same OCS Field(s). After one

Contract Year under the Rate Schedule FT-1 Service

Agreement, Shipper may terminate its Rate Schedule FT-1

Service Agreement and, if firm capacity is available on

Transporter's Pipeline Facilities, increase the MDTQs

under its Rate Schedule FT-3 Service Agreement by an

amount equal to Shipper's actual average daily

throughput under its Rate Schedule FT-1 Service

Agreement.