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Original Sheet No. 179 Original Sheet No. 179 : Superseded

RATE SCHEDULE IT-S

INTERRUPTIBLE TRANSPORTATION SERVICE - SOUTHERN DIVISION

(Continued)

2. APPLICABILITY AND CHARACTER OF SERVICE:

2.1 This Rate Schedule shall apply to the

interruptible transportation of natural gas by

Norte¤o pursuant to an IT-S Service Agreement

executed by Norte¤o and Shipper providing for

transportation service up to a Maximum Daily

Transportation Quantity ("MDTQ"), and subject to

the terms of this Rate Schedule, the IT-S Service

Agreement and the General Terms and Conditions of

Norte¤o's FERC Gas Tariff. Except for the

adjustments to the General Terms and Conditions

under Article IX of the Service Agreement, if

there is any inconsistency between this Rate

Schedule, the Service Agreement, and the General

Terms and Conditions, the General Terms and

Conditions shall prevail.

2.2 Service hereunder is provided pursuant to Part 284

of the Commission's Regulations.

2.3 Service hereunder shall consist of:

(a) delivery by Shipper and receipt by Norte¤o of

natural gas for Shipper's account at the

Receipt Point(s) set forth in the IT-S

Service Agreement;

(b) the transportation of said gas by Norte¤o;

and

(c) the redelivery by Norte¤o to Shipper or for

Shipper's account of quantities of natural

gas at the Delivery Point(s) set forth in the

IT-S Service Agreement.

2.4 Norte¤o shall also receive at the Receipt

Point(s), and retain, a portion of the volumes

delivered by Shipper for transportation to

reimburse Norte¤o for fuel usage and losses

("Retention Quantity"). Such volumes shall be

equal to the quantity of gas delivered for

transportation multiplied by the applicable

Retention Quantity percentage set forth at Sheet

No. 10 of Norte¤o's FERC Gas Tariff.