Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 10/30/1999, Docket: RP99-518-000, Status: Effective

Original Sheet No. 16C Original Sheet No. 16C : Effective

Superseding: No. 16c

Rate Schedule FTS-1

Firm Transportation Service

(Continued)

3. RATES (Continued)

3.13 NEGOTIATED RATES

Notwithstanding any provision of PG&E GT-NW’s Tariff to the

contrary, PG&E GT-NW and Shipper may mutually agree in writing

to a Negotiated Rate (including a Negotiated Rate Formula) with

respect to the rates, rate components, charges, or credits that

are otherwise prescribed, required, established, or imposed by

this Rate Schedule or by any other applicable provision of PG&E

GT-NW’s Tariff.

Such Negotiated Rate shall be set forth in Attachment B to the

Firm Transportation Service Agreement and PG&E GT-NW shall make

any filings with the Commission necessary to effectuate such

Negotiated Rate.