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Original Sheet No. 169 Original Sheet No. 169 : Superseded

RATE SCHEDULE RCS

FIRM TRANSPORTATION SERVICE - RELEASED CAPACITY

(continued)

15. TERMINATION OF SERVICE:

(a) Notwithstanding the term set forth in a Released

Capacity Service Agreement, Norte¤o shall have the

right to terminate service pursuant to this Rate

Schedule and terminate the release of capacity,

and Releasing Shipper shall have the right to

permanently recall Released Capacity irrespective

of its recall rights, in the event that a

Replacement Shipper fails to comply with the terms

and conditions applicable to Released Capacity

Service and/or fails to pay Norte¤o when due

amounts owed for service provided pursuant to this

Rate Schedule, at any time after Norte¤o has given

written notice to the Releasing Shipper and

Replacement Shipper of the Releasing Shipper's

failure to comply or pay. If such failure to

comply or pay is subject to dispute in good faith,

then the provisions applicable to such disputes

contained in the General Terms and Conditions of

this FERC Gas Tariff shall apply.

(b) Termination of a Released Capacity Service

Agreement shall not relieve the Replacement

Shipper of the obligation to pay amounts due to

Norte¤o for services rendered, including

surcharges, fees, penalties and amounts related to

gas imbalances. Accordingly, the obligation to

make payment for services rendered under this Rate

Schedule shall survive termination of the Service

Agreement until all amounts due hereunder have

been paid in full.