Norteño Pipeline Company

First Revised Volume No. 1

Effective Date: 04/01/1996, Docket: CP96- 81-007, Status: Effective

Original Sheet No. 115 Original Sheet No. 115 : Superseded

RATE SCHEDULE FT-S

FIRM TRANSPORTATION SERVICE - SOUTHERN DIVISION

(Continued)

5. RATES:

5.2 Norte¤o shall have the unilateral right to file

with the appropriate regulatory authority and make

changes authorized by such authority in (a) the

rates and charges applicable to its Rate Schedule

FT-S (b) Rate Schedule FT-S pursuant to which this

service is rendered; provided, however, that the

firm character of service shall not be subject to

change hereunder, or (c) any provisions of the

General Terms and Conditions applicable to Rate

Schedule FT-S. Norte¤o agrees that Shipper may

protest or contest the aforementioned filings, or

seek authorization from duly constituted

regulatory authorities for such adjustment of

Norte¤o's existing FERC Gas Tariff as may be found

necessary in order to assure that the provisions

in (a), (b) or (c) above are just and reasonable.

5.3 For all natural gas service rendered hereunder,

Shipper shall pay Norte¤o each month the sum of

the charges listed below, if applicable:

(a) Reservation Charge: An amount determined as

the unit amount identified as the Reservation

rate in dollars per MMBTU set forth from time

to time on the currently effective Sheet No.

10 of this First Volume No. 1, which sheet is

incorporated herein by reference, multiplied

by Shipper's Maximum Daily Transportation

Quantity, as stated in Shipper's FT-S Service

Agreement.

(b) Commodity Charge: An amount determined as

the Commodity rate in dollars per MMBTU se

forth from time to time on the currently

effective sheet No. 10 of this First Volume

No. 1 multiplied by the quantity of gas

transported to or for the account of Shipper

by Norte¤o during the applicable Billing

Month.