Pacific Interstate Transmission Company

Original Volume No. 1

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Effective Date: 10/01/1981, Docket: GT97- 67-000, Status: Effective

Original Sheet No. 4 Original Sheet No. 4 : Effective

RATE SCHEDULE CQS-1

(Contract Quantity Service)

1. AVAILABILITY

This Rate Schedule is available to Southern California Gas Company (some-

times referred to hereinafter as "Buyer") for the purchase of gas from

Pacific Interstate Transmission Company (hereinafter called "Seller") upon

the execution of a Service Agreement in the form contained in this FERC Gas

Tariff, Original Volume No. 1.

2. APPLICABILITY AND CHARACTER OF SERVICE

This Rate Schedule shall apply to all gas delivered or caused to be de-

livered under Buyer's Services Agreement for service under Rate Schedule

CQS-1. Gas caused to be delivered by Seller to Buyer under this Rate

Schedule shall be firm and not subject to interruption, except as Provided

in Sections 8, 9, and 21 of the General Terms and Conditions.

3. BUYER'S OBLIGATION TO PAY COST OF SERVICE

Buyer shall be obligated to pay Seller in respect of each billing month,

charges determined in accordance with Section 4 hereof, for each such

billing month. Such obligation is subject to adjustment as provided in

Section 5 and 6 hereof and shall be discharged as provided in Section 7

hereof and in Section 5 of the General Terms and Conditions.

4. COST OF SERVICE

4.1 Computation: Seller's Cost of Service shall be determined by Seller

for each billing month and shall be equal to the aggregate of the items

described in Subsection 4.4 through 4.9 hereof for such billing month

determined in accordance with this Section 4. Computation of Cost of

Service under this Section and shall be based on the amounts related to

sales under this Rate Schedule recorded in Seller's books of account

applicable to its Northwest Division System except to the extent that

such amounts must be adjusted in order to give effect to the provisions

of this Section 4.

4.2 Seller's Accounts: Seller shall maintain books of account in accord-

ance with the requirements of the Federal Energy Regulatory Commission

("FERC" or "Commission") applicable to Seller and, to the extent not

inconsistent with such requirements, in accordance with generally

accepted accounting principles.

(continued)