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Original Sheet No. 250 Original Sheet No. 250 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

the case may be, and the sum of the

MDTQs and MDCQs of each Buyer and

Shipper who nominated affected firm

service.

(b) Interruptible Capacity - Interruptible

transportation shall be offered on the basis

of price. When capacity available to be

scheduled for use by interruptible shippers

is less than the quantity nominated and

confirmed, capacity available for such

interruptible transportation shall be

scheduled first for the Shipper paying the

highest rate. Capacity will be prorated

among interruptible Shippers that are paying

equal rates based on quantities nominated at

the affected Receipt Point(s) and Delivery

Point(s), or mainline segment, or production

and gathering line, as the case may be.

(c) Discounted Interruptible Capacity - Norte¤o

reserves the right, on five days notice, to

interrupt service to an interruptible Shipper

paying less than the maximum rate Norte¤o is

entitled to charge for such service in order

to enable Norte¤o to provide service to

another Shipper if such service would result

in a higher unit rate, excluding Retention

Quantities, to Norte¤o. The Shipper so

affected may avoid such interruption by

immediately agreeing to pay such higher rate.

(d) Extension of Service - A Shipper receiving

service under the Transportation Rate

Schedules shall not lose its capacity

priority for purposes of this Section 15 by

the renewal or extension of the term of that

service; provided, however any renewal or

extension must be pursuant to a rollover or

evergreen provision of the executed Service

Agreement.