Norteño Pipeline Company

First Revised Volume No. 1

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Effective Date: 10/01/1997, Docket: TM98-1-138-000, Status: Effective

Second Revised Sheet No. 10 Second Revised Sheet No. 10 : Superseded

Superseding: First Revised Sheet No. 10

STATEMENT OF RATES

Effective Rate Applicable to Rate Schedules

Contained in this FERC Gas Tariff, First Volume No. 1

(Rates in Dollars per MMBTU)

SALES RATE SCHEDULE:

The rates for Rate Schedule GSS - General Sales Service -

are subject to negotiation as provided under the terms of

the Rate Schedule, Service Agreement and the General Terms

and Conditions of this FERC Gas Tariff.

TRANSPORTATION RATE SCHEDULE:

Base Effective

Rate Schedule Rate Surcharges Tariff Rate

FT-S - Canutillo and Anthony(4)

Reservation (1) (2) $0.8400 $0.0107 $0.8507

Commodity (3) $0.0000 $0.0022 $0.0022

Minimum Rate (3) $0.0000 $0.0022 $0.0022

Retention Quantity 0.00%

FT-DN - Del Norte

Reservation (1) (2) $ N/A $ N/A $ N/A

Commodity (3) $ N/A $0.0022 $ N/A

Minimum Rate (3) $ N/A $0.0022 $ N/A

Retention Quantity 0.00%

IT-S - Commodity:

Maximum Rate $0.0280 $0.0022 $0.0302

Minimum Rate $0.0005 $0.0022 $0.0027

Retention Quantity 0.00%