Pacific Interstate Transmission Company

Original Volume No. 1

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Effective Date: 11/01/1996, Docket: CP96-544-001, Status: Effective

Original Sheet No. 120 Original Sheet No. 120 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

24. CURTAILMENT PURSUANT TO TITLE IV OF THE NATURAL GAS POLICY

ACT OF 1978

24.1 Curtailment Procedure. If, due to any cause

whatsoever, Seller is unable to deliver its total

obligation to sell gas, then, all sales shall be made

under the following procedure:

(a) Seller shall notify each Buyer orally (to be

confirmed in writing) of the potential need to

curtail as early as Seller can reasonably foresee

that curtailment may become necessary at the point

of sale.

(b) Upon providing the notification described in the

preceding paragraph, Seller shall limit Buyer's

right to purchase as follows:

1. All volumes sold under Rate Schedule CQS-1

shall take precedence over volumes sold under

Rate Schedule S-1.

2. All volumes will be subject to the applicable

curtailment rules of the transporting

interstate pipeline. Volumes which shall

have equal priority of service on such

pipelines shall be curtailed in the following

manner.

3. If the method of transportation is capacity

released by Seller, such capacity will be

curtailed in order of price paid with the

lowest being curtailed first. If the amound

paid is equal, curtailments will be pro rata.