Mojave Pipeline Company

Second Revised Volume No. 1

Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

Second Revised Sheet No. 248 Second Revised Sheet No. 248

Superseding: First Revised Sheet No. 248

GENERAL TERMS AND CONDITIONS

(Continued)

13. Fuel and L&U

13.1 The fuel charge (which includes fuel and L&U, as defined in Section

4 of Rate Schedules FT-1 and IT-1) will be determined pursuant to

this Section 13. The fuel charge will include three components: 1)

a current reimbursement percentage which is designed to recover the

fuel and L&U attributable to current transportation service, 2) a

volumetric "True-Up" of any volume differences between actual fuel

and L&U amounts retained and 3) a "True-Up" of any cost or revenue

over/under collection associated with a prior fuel and L&U charge,

including without limit other gas balancing costs/revenues.

13.2 The Fuel and L&U Reimbursement Percentages shall be stated on the

Statement of Rates Sheet and shall apply to those Rate Schedules

requiring assessment of Fuel and L&U.

(a) Except as otherwise specified in this Section 13.2, all

transactions regardless of type will be assessed a Fuel and L&U

charge.

(b) Fuel will be assessed on each segment where fuel is actually

consumed.

transactions:

(i) Displacement transactions not consuming fuel such as

those involving receipts from Transporter's Oxy 17Z

Point of Receipt flowing east to Point(s) of Delivery;

(ii) Displacement transactions not consuming fuel such as

those involving deliveries flowing west to east to

Topock; or

(iii) Transactions involving transportation service from

Transporter's Daggett Point of Receipt to the Cadiz

Point of Delivery.

13.3 The Fuel and L&U Reimbursement Percentages shall be computed

annually using the procedures described in this section.

(a) Transporter shall file the Fuel and L&U Reimbursement

Percentages no later than November 30 to become effective on

January 1 of each calendar year.