Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 255 Original Sheet No. 255 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

17.4 If, on any Day, Norte¤o determines that the

capacity of its mainline system, or any portion

thereof, is insufficient to serve all

transportation requirements which are or would

otherwise be scheduled to receive service on such

Day, capacity which requires allocation shall be

allocated in a manner which results in curtailment

of capacity as provided in Section 15 of the

General Terms and Conditions.

17.5 If, after the commencement of service in any given

month, Norte¤o finds that there exists on its

system, or any portion thereof, capacity in excess

of that required for gas scheduled, Norte¤o may

announce on its Electronic Bulletin Board or other

means the availability of such capacity. Upon

such announcement, Norte¤o shall allocate such

excess capacity to Shippers that submit a request

in sequence as follows:

(a) First, among firm transportation Shippers;

(b) Second, among interruptible transportation

Shippers who nominated natural gas for

transportation in accordance with Section

19.1 and 19.2, and who failed to receive

their nominated quantities because of

capacity constraints on Norte¤o's system.

Capacity shall be allocated first-come,

first-served to any such Shippers based on

the date that Norte¤o receives a revised

Nomination; and

transportation Shippers who submit a

Nomination on the basis of price.

17.6 Norte¤o shall have the right not to accept, for

the account of Shipper, from any Receipt Point, a

quantity of gas that is less than fifteen (15)

MMBTU per day, so as to avoid measurement problems

relative to small volumes and disproportionate

administrative burdens.