Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 196 Original Sheet No. 196 : Superseded

RATE SCHEDULE IT-DN

INTERRUPTIBLE TRANSPORTATION SERVICE - DEL NORTE DIVISION

(continued)

5.3 RATES:

The GRI Surcharge, if applicable, multiplied

by the quantity of gas delivered to or for

the account of Shipper by Norte¤o during the

applicable Billing Month.

(d) Penalty Charges: Any Daily Scheduling

Charges, Daily Balancing Charges,

Unauthorized Receipt Charges, or Cumulative

Monthly Balancing Charges, as defined in

Section 19 of the General Terms and

Conditions, or any Curtailment Over-Run

Penalty, as defined in Section 15.5 of the

General Terms and Conditions, applicable to

Shipper during the applicable Billing Month.

(e) Incidental Charges: Shipper shall reimburse

Norte¤o for any incidental charges incurred

by Norte¤o in providing this service. Such

charges may include filing fees and, subject

to agreement and approval of Shipper, costs

of construction or acquisition of new

facilities necessary to render service or

such other charges as may be authorized by

any regulatory agency having jurisdiction.

5.4 For purposes of Section 5.3(e), the term "new

facilities" is defined as facilities required for

Norte¤o to either receive or deliver gas under

this Rate Schedule and which facilities are not

existing on the date Shipper executes an IT-DN

Service Agreement for service hereunder. Section

5.3 pertains to facilities at receipt and delivery

points only. It is not intended to limit which

party may own, operate, install, or pay for

facilities upstream of a receipt point or

downstream of a delivery point.

(a) New facilities may be installed by either

Norte¤o or Shipper as follows: