Pacific Interstate Offshore Company

Second Revised Volume No. 1

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

Original Sheet No. 48 Original Sheet No. 48 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

14. FERC ANNUAL CHARGE ADJUSTMENT (cont'd)

14.3 Filing Procedure. The notice period shall be as

provided in the Commission's regulations and the

proposed effective date of Transporter's ACA

filings shall be October 1 of each calendar year

unless for good cause shown a lesser notice period

and different effective date is allowed by valid

Commission Order. Any such filing shall not

become effective unless it becomes effective

without suspension or refund obligation.

14.4 Remittance to the Federal Energy Regulatory

Commission. Transporter shall remit to the

Federal Energy Regulatory Commission, on or before

the date which is specified on the Annual Charges

Billing, the Total Annual Charge stated on such

billing.

14.5 Accounting Procedures. Transporter shall record

annual charges billed by the Federal Energy

Regulatory Commission (FERC) in Account No. 186

Miscellaneous Deferred Debits when paid. This

cost shall be amortized by charges to Account No.

928 - Regulatory Commission Expenses.

To provide for the recovery of this cost,

Transporter will bill to its Shipper on a monthly

basis an amount equal to the approved rate as

reflected in Transporter's Rate Schedules FT-1 and

IT-1, times the actual volumes delivered during

that month for all rate schedules.

The monthly difference between the amount

amortized to Account No. 928 from Account No. 186

and the amount billed to the customer each month

shall be charged or credited to Account No. 186

with contra charges or credits to Account No. 253

- Miscellaneous Deferred Credits.