Venice Gathering System, L. L. C.

Original Volume No. 1

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

Original Sheet No. 326 Original Sheet No. 326 : Effective

ARTICLE I

1. GAS TO BE TRANSPORTED

1.1 Subject to the terms and provisions of this

Service Agreement and VGS' Rate Schedule FTS-2,

VGS agrees to accept such quantities of gas as

Shipper may cause to be tendered to VGS at: (i)

the Primary Receipt Point(s), designated

pursuant to Subsection 2.1 of Article II, (ii)

any Primary Receipt Point(s) for quantities in

excess of the Maximum Daily Quantities for each

Primary Receipt Point set forth in Exhibit A on

the same priority basis as a Secondary Receipt

Point, or (iii) any Secondary Receipt Point(s)

nominated by Shipper, on any day during the

term of this Service Agreement; provided,

however, that VGS shall only be obligated to

accept on any day for transportation hereunder

that quantity of gas VGS determines it has

available capacity to receive, transport, and

deliver and provided further that in no event

shall VGS be obligated to transport gas on any

day in excess of the Maximum Daily Quantities

for any Primary Receipt Point or in excess of

the Maximum Daily Reservation Quantity as

determined by the procedures set forth in

Exhibit B.

1.2 If on any day VGS should determine that the

remaining transportation capacity of its

System, after VGS has transported gas for

Shippers with superior rights to

transportation, is insufficient to transport

all quantities of gas under similar

transportation agreements entitled to similar

transportation services, VGS shall allocate the

available transportation capacity on the basis

set forth in Section 8 of the General Terms and

Conditions incorporated by reference in VGS'

Rate Schedule FTS-2.