Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 167 Original Sheet No. 167 : Superseded

RATE SCHEDULE RCS

FIRM TRANSPORTATION SERVICE - RELEASED CAPACITY

(continued)

fees, under the Rate Schedule applicable to the

Releasing Shipper divided by 30.4167 (12 months

divided by 365 days).

13. BILLING:

(a) Norte¤o shall bill the Replacement Shipper the

rate(s) specified in the Released Capacity Service

Agreement and any other applicable charges, and

such Replacement Shipper shall pay the billed

amounts directly to Norte¤o.

(b) Norte¤o shall bill the Releasing Shipper the

Reservation Charge, inclusive of any applicable

reservation surcharges and fees, associated with

the Released Capacity pursuant to its applicable

contract or tariff rate(s), with a concurrent

credit for any Reservation Charge billed to the

Replacement Shipper pursuant to its Released

Capacity Service Agreement. In the event that the

Replacement Shipper does not make payment to

Norte¤o of the Reservation Charges due as set

forth in its Released Capacity Service Agreement

in accordance with the General Terms and

Conditions of this FERC Gas Tariff and the terms

of this Rate Schedule, then Norte¤o shall notify

the Releasing Shipper of the amount due, and such

amount shall be paid to Norte¤o by the Releasing

Shipper within five (5) days of such notice. In

addition, Norte¤o shall bill the Releasing Shipper

any other charges or fees applicable under this

Rate Schedule.

14. TERMS AND CONDITIONS OF SERVICE:

(a) By executing a Released Capacity Service

Agreement, Replacement Shipper agrees that it will

comply with all terms and conditions of this FERC

Gas Tariff applicable to the Firm Transportation

Released Capacity Service provided by Norte¤o.