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Original Sheet No. 242 Original Sheet No. 242 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

11.3 Transportation Receipt and Delivery - The Receipt

Points and Delivery Points at which Norte¤o shall

receive and deliver transportation gas shall be

those set forth in the executed Service Agreement

for transportation service hereunder. For each

Receipt Point and Delivery Point identified in the

Service Agreement there shall be identified a

Maximum Daily Quantity (MDQ) which shall be the

maximum quantity that Norte¤o is obligated to

receive or deliver.

11.4 Third Party Facilities - Shipper shall make any

necessary arrangements with other parties so as to

be able to deliver gas to Norte¤o at the Receipt

Point(s) and to receive gas at the Delivery

Point(s) where Norte¤o delivers gas after

transportation; provided, however, that such

arrangements shall be compatible with the

operating conditions of Norte¤o's pipeline system

and shall provide for coordinated dispatching and

balancing with Norte¤o including confirmation of

scheduled deliveries and receipts to or for the

account of Shipper.

11.5 Determination of Receipts and Deliveries - Unless

Shipper and Norte¤o mutually agree otherwise, the

quantities of gas delivered by Norte¤o to or for

the account of Shipper during each month under the

Rate Schedules FT-S, FT-DN and RCS shall be

considered the first gas through the meter;

deliveries under Rate Schedules IT-S and IT-DN

shall be considered the second gas through the

meter. In the event that gas tendered by Shipper

to Norte¤o for transportation, or gas delivered by

Norte¤o to or for the account of Shipper after

transportation, is commingled with other gas at

the Receipt Point(s) or Delivery Point(s), then

the transportation quantities of gas received or

delivered to or for the account of Shipper shall

be that quantity of gas scheduled by Norte¤o for

delivery.