Pacific Interstate Offshore Company

Second Revised Volume No. 1

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

Original Sheet No. 35 Original Sheet No. 35 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

4. MEASURING EQUIPMENT (cont'd):

4.3 Care Required

All installations of measuring equipment, applying

to or affecting deliveries or receipts hereunder,

shall be made in such manner as to permit an

accurate determination of the quantity of gas

delivered or received and ready verification of the

accuracy of measurement. Reasonable care shall be

exercised by Shipper/Shipper's Agent in the

installation, maintenance and operation of any

pressure regulating equipment which it may install

so as to avoid, so far as practicable, any

inaccuracy in the determination of the volume of gas

delivered or received hereunder.

4.4 Failure of Measurement Equipment

In the event measuring equipment is out of service,

or registering inaccurately, the quantity of gas

delivered or received hereunder shall be estimated:

(a) By using the registration of any check

measuring equipment if installed and accurately

registering, or, in the absence of (a);

(b) By correcting the error if the percentage of

error is ascertainable by calibration, test, or

mathematical calculation, or, in the absence of

both (a) and (b) then;

receipt by deliveries or receipts during

periods under similar conditions when the

equipment was registering accurately.

Any estimates of quantities shall be reported on the

appropriate bill to the Shipper/Shipper's Agent with

the explanation of such estimate and supporting data

as to how the estimate was prepared.