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. 16 Original Sheet No. 16 : Effective

RATE SCHEDULE IT-1

INTERRUPTIBLE TRANSPORTATION SERVICE (cont'd)

2. APPLICABILITY AND CHARACTER OF SERVICE (cont'd)

2.3 Transportation service hereunder shall consist of the

acceptance by Transporter of natural gas tendered by

Shipper to Transporter at the Receipt Point(s)

specified in the executed IT-1 Transportation Service

Agreement, the transportation of that natural gas

through Transporter's pipeline facility, and the

delivery of that gas, after appropriate reductions as

provided for in this Rate Schedule, to Shipper or for

Shipper's account at the Delivery Point(s) specified

in the executed IT-1 Transportation Service

Agreement.

3. RATE

3.1 Maximum Transportation Charge

The maximum transportation charge under this Rate

Schedule shall be $.111 per MMBtu delivered during

the billing month plus the applicable Annual Charge

Adjustment Clause (ACA) pursuant to FERC Order No.

472 as set forth in Section 3.1.2 of Rate Schedule

FT-1. Transporter may charge an individual Shipper a

rate for transportation service under this Rate

Schedule that is less than the Maximum Rate.

Transporter shall submit any reports required by FERC

regulations with respect to any charges at less than

the Maximum Transportation Charge.

3.2 Minimum Transportation Charge

The minimum rate for transportation service under

this Rate Schedule shall be 0.00 cents per MMBtu

delivered during the billing month.