Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 160 Original Sheet No. 160 : Superseded

RATE SCHEDULE RCS

FIRM TRANSPORTATION SERVICE - RELEASED CAPACITY

(continued)

(f) With respect to any notice of a pre-arranged

release for a period of less than 31 days, a firm

shipper may not extend or roll-over such release

without posting for bids in accordance with

Section 6(c) of this Rate Schedule, and may not

re-release to the same replacement shipper until

twenty-eight days after the first release period

has ended, unless the release is at Norte¤o's

maximum tariff rates applicable to the

Transportation Rate Schedule under which the

capacity is being released.

7. QUALIFICATION TO PARTICIPATE AS A BIDDING SHIPPER:

Any party wishing to become a Bidding Shipper and

participate in Norte¤o's Released Capacity Service

under this Rate Schedule must submit a valid Released

Capacity Service Request Form and satisfy the

creditworthiness requirements of Norte¤o's FERC Gas

Tariff applicable to transportation service. Such a

party may not bid on released capacity without first

satisfying the creditworthiness requirements and

receiving notice from Norte¤o of its approval as a

Bidding Shipper and its level of creditworthiness. A

Bidding Shipper may not bid for quantities of released

capacity in excess of its approved creditworthiness.

Continued violation by a Bidding Shipper of the terms

of this Section 7 or any other terms and conditions of

this Rate Schedule after written notice from Norte¤o

will result in suspension of such Shipper's

qualification as a Bidding Shipper for a period of one

(1) year.

The form to be used for making requests for Released

Capacity Service is set forth in these General Terms

and Conditions, beginning at Sheet No. 225, and is

available from Norte¤o upon request.