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Original Sheet No. 182 Original Sheet No. 182 : Superseded

RATE SCHEDULE IT-S

INTERRUPTIBLE TRANSPORTATION SERVICE - SOUTHERN DIVISION

(Continued)

5. RATES:

5.1 The applicable rates for service under this Rate

Schedule are set forth on the currently effective

Sheet No. 10 of this FERC Gas Tariff and are

hereby incorporated herein.

5.2 Norte¤o shall have the unilateral right to file

with the appropriate regulatory authority and make

changes authorized by such authority in (a) the

rates and charges applicable to its Rate Schedule

IT-S, (b) Rate Schedule IT-S pursuant to which

this service is rendered; provided, however, that

the interruptible character of service shall not

be subject to change hereunder, or (c) any

provisions of the General Terms and Conditions

applicable to Rate Schedule IT-S. Norte¤o agrees

that Shipper may protest or contest the

aforementioned filings, or seek authorization from

duly constituted regulatory authorities for such

adjustment of Norte¤o's existing FERC Gas Tariff

as may be found necessary in order to assure that

the provisions in (a), (b) or (c) above are just

and reasonable.

5.3 For all natural gas service rendered hereunder,

Shipper shall pay Norte¤o each month the sum of

the applicable charges listed below, if

applicable:

(a) Commodity Charge: An amount determined as

the Commodity rate in dollars per MMBTU set

forth from time to time on the currently

effective Sheet No. 10 of this First Volume

No. 1 multiplied by the quantity of gas

transported to or for the account of Shipper

by Norte¤o during the applicable Billing

Month.

(b) Annual Charge Adjustment: The ACA Surcharge

rate multiplied by the quantity of gas

delivered to or for the account of Shipper by

Norte¤o during the applicable Billing Month.