Venice Gathering System, L. L. C.

Original Volume No. 1

Effective Date: 01/01/1998, Docket: CP97-533-002, Status: Effective

Original Sheet No. 16 Original Sheet No. 16 : Effective

RATE SCHEDULE FTS-2

FIRM TRANSPORTATION SERVICE

1. AVAILABILITY

This Rate Schedule is available to any Shipper for the

firm transportation of gas by Venice Gathering System,

L.L.C. (VGS) under the authority and provisions of Part 284

of FERC Regulations, provided that:

1.1 Shipper commits its owned and/or controlled

production for the life-of-the field for delivery

into and transportation through VGS facilities in

a reserve commitment agreement covering all of

Shipper's production from designated OCS Blocks;

1.2 VGS determines that it has sufficient capacity to

render the firm transportation service and that it

is able to provide said transportation;

1.3 Any construction, acquisition, or expansion of

facilities necessary to commence and provide the

firm transportation service has been completed;

1.4 Any Shipper requesting firm transportation service

under Section 311 of the Natural Gas Policy Act

(NGPA) has provided written certification

including sufficient information to verify that

the requested service qualifies under Section 311

of the NGPA, and certifications have been received

from the qualifying local distribution companies

or intrastate pipelines in accordance with Section

5 of the General Terms and Conditions;

1.5 Shipper satisfies the creditworthiness criteria in

accordance with Section 12.5 of the General Terms

and Conditions; and

1.6 Shipper executes a Firm Service Agreement in the

form contained in this FERC Gas Tariff for service

under this Rate Schedule.