Pacific Interstate Offshore Company

Second Revised Volume No. 1

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

Original Sheet No. 31 Original Sheet No. 31 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

2. QUALITY (cont'd)

2.3 Failure to Conform (Receipt)

If the gas stream received by Transporter shall fail

at any time to conform to any of the quality

specifications set forth above, Transporter will

notify Shipper of such deficiency and if Shipper

fails to remedy such deficiency promptly,

Transporter may refuse to accept further receipt

pending correction by Shipper.

3. MEASUREMENT

3.1 The methods of computing measured quantities shall

be in accordance with the recommendations set forth

in AGA Measurement Committee Report No. 3 or as such

recommendations may be amended from time to time,

and the specific system of computation shall be

mutually agreed upon by Shipper/Shipper's Agent and

Transporter.

3.2 The quantities of gas delivered or received

hereunder shall be measured according to Boyle's Law

and Charles' Law for the measurement of gas under

varying pressures and temperatures with deviation

therefrom as provided in paragraph (f) of this

Section, and shall be determined as follows:

(a) The unit of volume for the purpose of

measurement shall be 1 cubic foot of gas at a

base temperature of 60 degrees Fahrenheit, and

at a pressure base of 14.73 psia.

(b) The assumed atmospheric pressure at the point

of delivery shall be 14.73 psia irrespective of

actual elevation or location of point of

delivery.

recorded during the periods of flow only shall

be deemed the gas temperature for the purpose

of calculating quantities.