Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 119 Original Sheet No. 119 : Superseded

RATE SCHEDULE FT-S

FIRM TRANSPORTATION SERVICE - SOUTHERN DIVISION

(Continued)

of materials, and construction shall be

subject to approval by Norteno's

inspectors.

(2) Shipper shall coordinate the

construction of such facilities with

Norte¤o so that Norte¤o may reasonably

have inspectors at the site during

construction. Shippers assume full

responsibility and liability and agree

to hold Norte¤o harmless from any

liability of any nature arising from the

installation of such facilities by

Shipper, or Shipper's agents. It is the

Shipper's responsibility to assure that

all facilities installed and owned by

Shipper or any other party upstream of a

receipt point or downstream of a

delivery point comply with all

applicable governmental regulations and

design requirements for their intended

use (i.e., pressure, control, etc.).

5.5 Norte¤o may from time to time and at any time at

its sole discretion charge any individual Shipper

for transportation service under Rate Schedule

FT-S a rate which is lower than the charge that

would apply based on the maximum rates set forth

on Sheet No. 10 or provided for in Section 5

herein; provided, however that such total charge

may not be less than the charge based on the

Minimum Rate set forth on Sheet No. 10 for Rate

Schedule FT-S. If Norte¤o charges any Shipper a

rate which is less than the Maximum Rate, Norte¤o

shall file with the Commission any and all reports

as required by the Commission's Regulations

setting forth the applicable charge, the

individual Shippers affected, the volume

transported and any other information which may be

required.