Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 246 Original Sheet No. 246 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

15. PRIORITY OF SERVICE, CAPACITY ALLOCATION AND

CURTAILMENT:

15.1 Right of Norte¤o to Serve Others - Nothing in

these General Terms and Conditions, this FERC Gas

Tariff, any Rate Schedule, or any Service

Agreement executed by Norte¤o and Buyer or Shipper

shall in any way abridge the right of Norte¤o to

sell, receive, transport or deliver natural gas to

or for others. In providing service to others,

Norte¤o shall not unreasonably discriminate

against existing or future Buyers or Shippers.

15.2 General - It is recognized that Norte¤o's capacity

may be limited on a system-wide basis or on a

segment-by-segment basis. The allocation

procedures and priorities set forth in Section 15

shall apply to both system-wide and segment-by-

segment limitations or curtailments, insofar as is

possible.

15.3 Notice of Curtailment - Norte¤o shall give Buyer

or Shipper a minimum of two hours notice of

curtailment except in the case of an emergency.

In case of emergency, Norte¤o shall give Buyer or

Shipper such notice as circumstances permit.

15.4 Operations Curtailment - Norte¤o may discontinue

or curtail receipts or deliveries of gas at any

time if required in Norte¤o's judgment by weather

or the necessity for repairs, operating changes or

events of Force Majeure, as hereinabove defined,

other than capacity shortages as specified in

Section 15.6, upon such notice as is reasonable

under the circumstances. In any such curtailment,

quantities of gas deliverable under the Sales Rate

Schedules or Transportation Rate Schedules by

Norte¤o to Buyer or Shipper on a firm basis shall

take priority over quantities of gas deliverable

by Norte¤o to Buyer or Shipper on an interruptible

basis. Firm transportation service will be

curtailed on a pro rata basis regardless of

whether the shipper is using primary alternate

points. Norte¤o and Buyer or Shipper shall

operate their systems so as to provide protection

to domestic and commercial consumers being served