Pacific Interstate Transmission Company

Original Volume No. 1

Effective Date: 11/01/1996, Docket: GT97- 67-000, Status: Effective

First Revised Sheet No. 5 First Revised Sheet No. 5 : Effective

Superseding: Original Sheet No. 5

RATE SCHEDULE CQS-1 (Continued)

(Contract Quantity Service)

4. COST OF SERVICE (cont'd)

4.3 Uniform System of Accounts: Account numbers specified herein

are those provided for in the Uniform System of Accounts

Prescribed for Natural Gas Companies by the FERC, ("Uniform

System of Accounts"). In the event that the Uniform System of

Accounts is renumbered, replaced, supplemented, amended,

modified or revised, the accounts, categories of such accounts,

and the description thereof referred to herein shall be deemed

to refer to the corresponding accounts in such renumbered,

replaced, supplemented, amended, modified or revised Uniform

System of Accounts, all without prejudice to the ability of

Seller to receive payment equal to its costs in the manner

contemplated by Subsection 4.4 through 4.9 hereof.

4.4 Operation and Maintenance Expenses

4.41 Natural Gas Purchases: Seller's obligations to its

suppliers relative to the billing month for natural gas

purchases by Seller for sale to buyer as recorded in

Account Nos. 800 through 803; plus an amount equal to

payments made by Seller and not previously billed for gas

not received under "take-or-pay" provisions of the sale

and purchase agreements between producers and Seller; and

minus an amount equal to credits received by Seller and

not previously credited under take-or-pay makeup

provisions of such agreements.

4.42 Costs of Transportation Performed by Others: Seller's

obligations for costs relative to the billing month

associated with transportation service performed by others

related to sales under this Rate Schedule as recorded by

Seller in Account No. 858, including:

(a) Seller's obligations to pay to Pacific Gas

Transmission Company all amounts in connection with

the transportation of gas by Pacific Gas

Transmission Company.

(b) Seller's obligations to pay to Northwest Pipeline

Corporation all amounts in connection with the

transportation of gas by Northwest Pipeline

Corporation.

Company all amounts in connection with the

transportation of gas by El Paso Natural Gas

Company.

(continued)