Norteño Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 271 Original Sheet No. 271 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

establishes, pursuant to Section 154.38(d)(6) of

the Commission's Regulations, an "ACA Surcharge"

to be applicable to quantities of gas sold or

transported under all of Norte¤o's Rate Schedules

contained in Volume Nos. 1 and 2 of Norte¤o's FERC

Gas Tariff. This amount is in addition to any

amounts otherwise payable to Norte¤o under said

Rate Schedules.

28.2 Basis for the Annual Charge Adjustment Charge -

The Rate Schedules specified in Section 29.1

hereof shall include an Annual Charge Adjustment

unit charge (ACA unit charge) applicable to each

MMBTU of gas sold or transported thereunder, and

the unit charge rate shall be reflected on Sheets

No. 10 and 11 of Second Revised Volume No. 1 and

Sheet No. 1A of Original Volume No. 2 of this FERC

Gas Tariff. The ACA unit charge shall be included

in the commodity component of any rate schedule

with two-part rates.

28.3 Filing Procedure - Changes to the ACA unit charge

must be filed annually to reflect the annual

charge unit rate authorized by the Commission each

fiscal year and are subject to the notice

requirements of Section 154.22 of the Commission's

Regulations. In the event, however, the

Commission's establishment of such annual charge

unit rate for a particular fiscal year prohibits

Norte¤o from making a timely filing for a change

to its ACA Charge, then the FERC's 30 day notice

requirements under Section 154.22 shall be deemed

waived for purposes of this Section 29.

28.4 Payment by Customer - The amount applicable to

each customer under its respective rate schedule

shall be due and payable with the bill for the

month to each customer.

29. ELECTRONIC BULLETIN BOARD:

29.1 Norte¤o shall maintain an interactive Electronic

Bulletin board (EB) system, which it will make

available to all Buyers and Shippers and other