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. 17 Original Sheet No. 17 : Effective

RATE SCHEDULE IT-1

INTERRUPTIBLE TRANSPORTATION SERVICE (cont'd)

3. RATE (cont'd)

3.3 Calculation of Monthly Billing

For billing purposes the rate calculated in Sections

3.1 or 3.2 above shall be multiplied by Shipper's

monthly delivered quantity as defined in Section

3.4.

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.

3.5 All revenues received under this Rate Schedule shall

be credited to Rate Schedule FT-1.

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 the Shipper under this Rate Schedule.

5. PRIORITY OF TRANSPORTATION SERVICE

5.1 Transporter shall schedule transportation service

hereunder immediately after scheduling all firm

contract service pursuant to Rate Schedule FT-1.