Pacific Interstate Offshore Company

Second Revised Volume No. 1

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

Original Sheet No. 43 Original Sheet No. 43 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

8. FORCE MAJEURE (cont'd)

8.2 Nature of Force Majeure (cont'd)

(e) Failures of facilities shall include without

limitation, freezing of wells or lines of pipe,

failures resulting from fires, washouts,

mechanical breakdowns, malfunctions or

necessities for making repairs or alterations to

plant installations, machinery, lines of pipe,

pumps, compressors, valves, gauges or any of the

equipment therein or thereon, and cratering,

blowout, or failure of any supplier well or

wells to produce, when any such failure of

facilities directly or indirectly results in

Shipper's or Transporter's inability to perform

its obligations beyond its reasonable control.

(f) Any occurrence, condition or situation not

covered by subparagraphs (a) through (e) above,

which renders Shipper or Transporter unable to

perform its obligations beyond its reasonable

control, and provided either Shipper or

Transporter could not have prevented such

occurrence, condition, or situation by the

exercise of reasonable diligence.

9. BILLING AND PAYMENT

9.1 Monthly Statement

On or before the 5th day of each calendar month,

Transporter shall render to Shipper a statement for

the preceding calendar month of the total amount of

gas delivered, if any. On or before the 10th day of

each month Transporter shall render to Shipper an

invoice reflecting the amounts due thereon.