Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 02/02/1998, Docket: GT98- 17-000, Status: Effective

Third Revised Sheet No. 14 Third Revised Sheet No. 14 : Effective

Superseding: Second Revised Sheet No. 14

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.3 Extension Charge

If Shipper designates a Primary Point of delivery on an

Extension Facility, then in addition to all other charges that

are applicable, Shipper shall pay the Extension Charge, which

shall consist of a reservation and delivery component.

(a) The reservation component of the Extension Charge shall

be the product of Shipper's Maximum Daily Quantity at the

Primary Point(s) of delivery on the Extension Facility,

the applicable Extension reservation rate as set forth on

Effective Tariff Sheet No. 4, and the distance, in

pipeline miles, from the Receipt Point(s) on the

Extension Facility to the Primary Point(s) of delivery.

(b) The delivery component of the Extension Surcharge shall

be the product of the quantities delivered at the

point(s) of delivery on the Extension Facility, the

applicable Extension delivery rate as set forth on

Effective Tariff Sheet No. 4, and the distance, in

pipeline miles, from the Receipt Point(s) on the

Extension Facility to the point(s) of delivery.

3.4 Authorized Overrun Charge

Quantities in excess of Shipper's MDQ shall be transported when

capacity is available on the PG&E GT-NW system and when the

provision of such Authorized Overruns shall not effect any

Shipper's rights on the PG&E GT-NW System. Authorized Overruns

are interruptible in nature. The rate charged shall be the same

as the rates and charges for interruptible transportation under

Rate Schedule ITS-1 as set forth on effective tariff Sheet No. 4,

and such Authorized Overruns shall be subject to the priority of

service provisions of Paragraph 19 of the Transportation General

Terms and Conditions.

3.5 Applicability of Surcharges

Shipper shall pay all reservation and usage surcharges

applicable to the service provided to such Shipper as set forth

in PG&E GT-NW's FERC Gas Tariff, First Revised Volume No. 1-A.

such surcharges shall be deemed to be part of Shipper's

reservation and Delivery Charges.

(Continued)