Pacific Interstate Transmission Company

Original Volume No. 1

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

Original Sheet No. 116 Original Sheet No. 116 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

13. RIGHT TO AUDIT BOOKS

Buyer shall have the right, at reasonable times, during normal business

hours, upon written request and at Buyer's expense, to review, or cause to

be reviewed by Buyer's representatives, all books, records, documents and

other data of Seller pertaining to its performance under Buyer's Service

Agreement necessary to verify the amount payable by Buyer to Seller under

Buyer's Service Agreement in any billing month, so long as such review

shall be completed within six billing months following the end of the

calendar year in which such amount is payable.

14. AUTHORIZED PERSONS

Buyer may, by notice to Seller, authorize connecting pipelines or other

Persons to receive deliveries of gas on behalf of Buyer in accordance with

the provisions of Buyer's Service Agreement. Unless such authorization is

revoked by notice from Buyer to Seller, Buyer shall be bound by all actions

taken by any Person so authorized in connection with the delivery, measure-

ment or testing of gas so delivered by Seller under Buyer's Service Agree-

ment. Seller shall inform Buyer and the Person so authorized of the volume

of gas delivered to such Person for the account of Buyer and of all other

relevant information concerning the volume, gross heating value and other

quality specifications of such gas.

15. LATERAL LINES

It is the policy of Seller that it will not build or contribute to the cost

of building any lateral pipelines to Buyer or other Persons.

Nothing in this policy statement shall require Seller to file an appli-

cation for a certificate of public convenience and necessity under Section

7(c) of the Natural Gas Act. Nothing in this policy statement, further,

shall prevent Seller from contesting an application for service filed

pursuant to Section 7(a) of such Act. Seller reserves the right to seek a

waiver of the policy set forth herein, for good cause shown, during any

proceeding before the Federal Energy Regulatory Commission instituted under

Section 7 of the Natural Gas Act.

(continued)