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Original Sheet No. 323 Original Sheet No. 323 : Superseded

FORM OF SERVICE AGREEMENT

FOR INTERRUPTIBLE TRANSPORTATION SERVICE

(continued)

PAYMENT BY WIRE TRANSFER:

Norte¤o: Norte¤o Pipeline Company

________________________ Bank

Account No. __________________

______________________, Texas

ARTICLE VI

Facilities

6.1 Norte¤o shall not be obligated to, but may, at its

reasonable discretion and to the extent that such

decisions are nondiscriminatory, construct or acquire

new facilities, or expand existing facilities, in order

to perform service under this Agreement. For purposes

of this Agreement and Section 5 of Rate Schedule IT-

___, an expanded facility shall be deemed to be a new

facility. If in Norte¤o's reasonable judgement it is

necessary to construct or acquire new facilities, or to

expand existing facilities, in order to enable Norte¤o