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Original Sheet No. 165 Original Sheet No. 165 : Superseded

RATE SCHEDULE RCS

FIRM TRANSPORTATION SERVICE - RELEASED CAPACITY

(continued)

(b) If firm capacity has been released for the entire

remaining term of the Releasing Shipper's firm

Transportation Service Agreement under Rate

Schedules FT-S or FT-DN then the Releasing Shipper

may request that Norte¤o amend its Transportation

Service Agreement to reflect the permanent release

of capacity. Such amendment may be conditioned on

exit fees or other terms and conditions, and,

absent the agreement of Norte¤o to amend the

Transportation Service Agreement, the Releasing

Shipper shall remain liable for payment of the

Reservation Charges applicable to the Released

Capacity. In the event that the Releasing

Shipper's Transportation Service Agreement is

amended to reflect the Released Capacity, Norte¤o

shall enter into a Transportation Service

Agreement under Rate Schedules FT-S and/or FT-DN

as applicable, with the Replacement Shipper in the

form prescribed by this FERC Gas Tariff, but

containing the rates and terms and conditions

established for the Released Capacity pursuant to

this Rate Schedule.

11. NOTICE OF OFFER TO ACQUIRE FIRM CAPACITY:

(a) In the event a Bidding Shipper elects to make

known its desire to acquire firm capacity on

Norte¤o's system, such Bidding Shipper shall

deliver notice to Norte¤o for posting on its

Electronic Bulletin Board of such election,

setting forth the following:

(i) Bidding Shipper's legal name and

address, and the name, title and

telephone number of the individual

responsible for authorizing the offer to

acquire capacity;

(ii) the quantity of daily firm capacity

desired;

(iii) the Receipt and Delivery Points at which

the capacity is desired, and the amount

of firm capacity at each point;