Pacific Interstate Offshore Company

Second Revised Volume No. 1

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Effective Date: 01/01/1994, Docket: RS92- 73-001, Status: Effective

Original Sheet No. 7 Original Sheet No. 7 : Effective

RATE SCHEDULE FT-1

FIRM TRANSPORTATION SERVICE (cont'd)

3. RATE (Cont'd)

3.4 Deliveries After Transportation Losses

3.4.1 Transporter's daily delivered quantity to

Shipper will equal: total Transporter

deliveries divided by total Transporter

receipts, multiplied by Transporter's daily

receipts from Shipper.

3.4.2 Transporter will provide forecasts of

transportation losses upon request.

4. FERC AND OTHER REGULATORY FEES

Each Shipper shall reimburse Transporter for all filing

fees required by the FERC or any regulatory body related

to service provided to Shipper under this Rate Schedule.

5. PRIORITY OF TRANSPORTATION SERVICE

5.1 Transporter shall schedule volumes tendered under

this Rate Schedule pro rata among Transporter's firm

transportation shippers according to Shipper's Daily

Contract Receipt Quantity.

5.2 Curtailment of all transportation volumes provided

under this Rate Schedule, shall be on a non-

discriminatory, pro rata basis.

5.3 In the event of multiple requests for service to the

same delivery point which exceed the capacity of such

delivery point, capacity shall be allocated on a

basis consistent with that provided under Section

5.2.