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Original Sheet No. 130 Original Sheet No. 130 : Superseded

RATE SCHEDULE FT-DN

FIRM TRANSPORTATION SERVICE - DEL NORTE DIVISION

(Continued)

(3) The projected costs and revenues in

nominal dollars will be evaluated using

a standard discounted cash flow

analysis, with a discount rate equal to

the most recently approved overall rate

of return for Norte¤o. Norte¤o will

undertake projects for which the

internal rate of return is positive by

greater than 3%.

(4) When Norte¤o has previously paid for all

or a portion of delivery point

facilities under this facilities

reimbursement policy, Shipper shall,

nevertheless, within thirty days after

receipt of invoice prepared by Norte¤o,

pay Norte¤o for Norte¤o's net book value

of such facilities when either of the

following events occurs: (1) When

Norte¤o's ability to fully recover such

costs is denied in any Section 4 or

Section 5 rate proceeding, or (2) when

Shipper ceases operations at the

delivery point where the facilities were

installed.

(b) Any new facilities contemplated by Section

5.3(f) which do not meet the economic test of

Section 5.4(a)(3) shall be installed by

Norte¤o at Shipper's expense.

(1) Norte¤o shall install, own, operate, and

maintain all such equipment at Shipper's

expense unless otherwise agreed to in

writing by Norte¤o and Shipper. All

such facilities owned and operated by

Norte¤o must include any rights-of-way

necessary to access facilities for

inspection and maintenance. Any such

facilities constructed by Shipper or

Shipper's agent must be in accordance