Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 03/01/2001, Docket: RP99-518-019, Status: Pending

Sixth Revised Sheet No. 7A Sixth Revised Sheet No. 7A : Pending

Superseding: Fifth Revised Sheet No. 7A

STATEMENT OF EFFECTIVE RATES AND CHARGES

FOR TRANSPORTATION OF NATURAL GAS

(Continued)

NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULE FTS-1

Explanatory Footnotes for Negotiated Rates under Rate Schedule FTS-1

1/ This contract does not deviate in any material aspect from the Form of

Service Agreement in this Tariff.

2/ Unless otherwise noted, all Shippers pay PG&E GT-NW’s maximum Reservation

Charge, Delivery Charge, ACA, and contribute fuel in-kind in accordance

with this Tariff.

3/ Index Price References: Unless otherwise noted, references to "Daily

Index Price" shall mean the price survey midpoint for the specified point as

published in Gas Daily for the day of gas flow. Weekend and holiday prices

will be determined using the next available Gas Daily publication. Unless

otherwise noted, the references to the "NGI FOM" for a specified point shall

mean Natural Gas Intelligence’s First of Month Bid Week Survey (Supplement

to NGI’s Weekly Gas Index) Spot Gas Price for the specified point.

4/ The Reservation Charge under this Agreement will equal the Daily Index

Price for Malin minus the Daily Index Price for Stanfield minus the Delivery

Charge minus ACA minus $.01/Dth minus an allowance for fuel. The allowance

for fuel shall be determined daily as product of the Gas Daily Index Price

for Stanfield and the applicable fuel and line loss percentage for the

Stanfield to Malin Path. The Reservation Charge shall not be less

than $0.00/Dth.

5/ The Reservation Charge under this Agreement will equal the Daily Index

Price for Malin minus the Daily Index Price for Stanfield minus the Delivery

Charge minus ACA minus $.01/Dth minus an allowance for fuel. The allowance

for fuel shall be $0.033/Dth. The Reservation Charge shall not be less

than $0.00/Dth.