Oktex Pipeline Company

Original Volume No. 1

Effective Date: 07/01/1999, Docket: RP99-332-000, Status: Effective

Second Revised Sheet No. 8 Second Revised Sheet No. 8 : Effective

Superseding: First Revised Sheet No. 8

5. CONSTRUCTION OF NEW FACILITIES

Transporter shall not be required to acquire or construct any pipeline

facilities specifically applicable to an individual Shipper (other than those

minor facilities incident to the receipt and delivery or measurement of Gas at

the Point(s) of Receipt and Point(s) of Delivery or at locations where Gas is

measured) in order to provide service under this Rate Schedule; provided,

however, that Transporter may, in its reasonable discretion, which discretion

will not be applied in a discriminatory manner and with the agreement of the

Shipper, agree to acquire or construct any such necessary facilities, subject

to the provisions of Section 8.4 of this Rate Schedule.

6. NOMINATIONS AND SCHEDULING

Refer to Section X. OPERATING INFORMATION, ESTIMATES, NOMINATION,

SCHEDULING AND BALANCING in the GENERAL TERMS AND CONDITIONS.

7. HOURLY VARIATIONS

Transporter shall receive, transport and deliver gas at a uniform hourly

rate of flow when operationally feasible, the amount which Transporter

scheduled for Shipper for that month for transportation under this Rate

Schedule, provided, however, that Transporter will transport hourly Quantities

for Shipper without regard to such hourly limitation to the extent that

Transporter can do so without impairment of service to its other Shippers or

without adversely affecting the operation of the system.

8. RATES

8.1 Applicable Rates. The applicable Maximum and Minimum Monthly Demand

Charges and Unit Commodity Rates, for firm reserved transportation service

under Rate Schedule FTS, are set forth in the currently effective Sheet No. 5

and are hereby incorporated herein.

8.2 Monthly Bill. The monthly bill for firm Transportation service

rendered under Rate Schedule FTS shall consist of a Monthly Demand Charge and

a Unit Commodity Charge determined as follows:

(a) Monthly Demand Charge - For each month, the Monthly Demand

Charge payable by each Shipper shall, subject to any discount as provided

herein, be equal to the applicable Maximum Monthly Demand Charge multiplied by

the Maximum Daily Contract Demand for transportation to each Delivery Point as

specified in the Gas Transportation Contract. The Monthly Demand Charge is

payable notwithstanding any failure to deliver all or any portion of Shipper's

Input Quantity to Transporter at each Receipt Point during such month, for any

reason whatsoever including force majeure.

(b) Unit Commodity Charge - For each month, the Unit Commodity Rate

payable by each Shipper shall, subject to any discount as provided herein, be

equal to the applicable Maximum Unit Commodity Rate multiplied by the sum of

the Input Quantity received by Transporter on behalf of Shipper during such

month at each Receipt Point for transportation to each Delivery Point.