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. 18 Original Sheet No. 18 : Effective

RATE SCHEDULE IT-1

INTERRUPTIBLE TRANSPORTATION SERVICE (cont'd)

5. PRIORITY OF TRANSPORTATION SERVICE (cont'd)

5.2 The daily scheduling priority among Shippers

receiving service under Rate Schedule IT-1 shall be

determined by the transportation service request

date. Should two or more Shippers have the same

transportation request date, then the Shipper

paying the higher rate will have priority. Should

two or more Shippers contract to pay the same rate

and also have the same transportation request date,

volumes shall be scheduled on a pro rata basis.

5.2.1 Should at any time during the term of an

executed IT-1 Transportation Service

Agreement, Transporter and Shipper contract

to change the rate, the receipt point(s) or

the term of such agreement, Shipper's

transportation service request date shall be

retained for purposes of establishing

scheduling priority.

5.3 If over a 60-day period a Shipper fails to tender

on average at least 80 percent of its scheduled

daily gas volume, then Shipper shall be assigned a

new Daily Contract Receipt Quantity which shall be

the volume that was tendered over such period.

This assignment may be waived by Transporter if it

deems that the deficiency was beyond the control of

Shipper. Any such waiver will be administered on a

non-discriminatory basis.