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Original Sheet No. 258 Original Sheet No. 258 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(a) Daily Scheduling Charges - If on any day

Shipper delivers to Norte¤o at the Receipt

Point(s) quantities which are in excess of

("Excess Deliveries") or deficient by

("Deficient Deliveries") the greater of 50

MMBTU or 10 percent of the transportation

quantities scheduled by Norte¤o, Shipper

shall have forty eight hours after

notification by Norte¤o, or such other period

of time as reasonably required by Norte¤o to

protect the integrity of its system, to

initiate corrective action at the affected

Receipt Point(s) and Delivery Point(s). In

the event Shipper fails to initiate the

corrective action mutually agreed upon by

Shipper and Norte¤o's gas dispatchers within

the period agreed upon, Norte¤o shall charge

Shipper a Daily Scheduling charge of $0.10

per day per MMBTU of Excess Deliveries or

Deficient Deliveries, for each day as long as

the Excess Deliveries or Deficient Deliveries

exist, until Shipper brings its cumulative

imbalance within the 10 percent tolerance.

(b) Daily Balancing Charges - If on any day

Shipper delivers to Norte¤o at the Receipt

Point(s) quantities which are in excess of

("Positive Imbalance") or deficient by

("Negative Imbalance")the greater of 50 MMBTU

or 10 percent of the transportation

quantities taken by Shipper at the Delivery

Points, Shipper shall have forty eight hours

after notification by Norte¤o, or such other

period of time as reasonably required by

Norte¤o to protect the integrity of its

system, to initiate corrective action

mutually agreed upon by Shipper's and

Norte¤o's gas dispatchers, at each affected

Receipt Point and Delivery Point. In the

event Shipper fails to initiate the

corrective action mutually agreed upon by

Shipper's and Norte¤o's gas dispatchers

within the period agreed upon, Norte¤o shall

charge Shipper a Daily Imbalance Charge of

$0.10 per day per MMBTU of Positive Imbalance

or Negative Imbalance, for each day as long