Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 124 Original Sheet No. 124 : Superseded

RATE SCHEDULE FT-DN

FIRM TRANSPORTATION SERVICE - DEL NORTE DIVISION

(Continued)

2. APPLICABILITY AND CHARACTER OF SERVICE: (Continued)

2.4 Norte¤o shall also receive at the Receipt

Point(s), and retain, a portion of the volumes

delivered by Shipper for transportation to

reimburse Norte¤o for fuel usage and losses

("Retention Quantity"). Such volumes shall be

equal to the quantity of gas delivered for

transportation multiplied by the applicable

Retention Quantity percentage set forth at Sheet

No. 10 of Norte¤o's FERC Gas Tariff.

2.5 Gas subject to transportation under this Rate

Schedule shall not be subject to curtailment or

interruption or discontinuance except such caused

by Force Majeure or in accord with Section 14 of

the General Terms and Conditions of Norte¤o's FERC

Gas Tariff, and shall have priority of service

over all deliveries made on an interruptible

service basis.

2.6 Priority of service and the allocation of capacity

for service under this Rate Schedule are pursuant

to Section 15 of the General Terms and Conditions

of Norte¤o's FERC Gas Tariff.