Pacific Interstate Offshore Company

Second Revised Volume No. 1

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

Original Sheet No. 36 Original Sheet No. 36 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

4. MEASURING EQUIPMENT (cont'd)

4.5 Test of Measuring Equipment

Transporter shall verify the accuracy of the

measuring equipment, including calorimeters, by

monthly routine tests or more often if use so

dictates, in the presence of representatives of

Shipper/Shipper's Agent and Transporter. In the

event that either party notifies the other party

that it desires a special test of any measuring

equipment, the parties shall cooperate to secure

prompt verification of the equipment.

4.6 Correction for Errors of Measuring Equipment

If, upon test, any measuring equipment, including

recording calorimeters, is found to be in error by

not more than one percent, previous recordings of

such equipment shall be considered accurate in

computing deliveries hereunder; but such equipment

shall be adjusted at once to record correctly. If,

upon test, any measuring equipment shall be found to

be inaccurate by an amount exceeding one percent, at

a recording corresponding to the average hourly rate

of flow for the period since the last preceding

test, or if, upon test, a recording calorimeter

shall be found to be inaccurate by an amount

exceeding one percent, then any previous recordings

of such equipment shall be corrected to zero error

for any period which is known definitely or agreed

upon, but in case the period is not known definitely

or agreed upon, such correction shall be for a

period extending over one-half of the time elapsed

since the date of last test, to the nearest day, not

exceeding a correction period of 16 days.

4.7 Preservation of Records

Each party shall preserve for a period of at least

three years all test data, charts and other similar

records, or such other period as shall be required

by the Federal Energy Regulatory Commission.