Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 03/27/2002, Docket: RP02-164-000, Status: Effective

Original Sheet No. 20 Original Sheet No. 20 : Effective

Superseding: No. 20

RATE SCHEDULE LFS-1

LIMITED FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.1 Reservation Charge (Continued)

Shipper's obligation to pay the Reservation Charge and

applicable Reservation Surcharge is independent of Shipper's

ability to obtain export authorization from the National

Energy Board of Canada, Canadian provincial removal

authority, and/or import authorization from the United

States Department of Energy, and shall begin with the

execution of the Limited Firm Transportation Service

Agreement by both parties. The Reservation Charge and

Reservation Surcharge due and payable shall be computed

beginning in the month in which service is first available

(prorated if beginning in the month in which service is

available on a date other than the first day of the month).

Thereafter, the monthly Reservation Charge and Reservation

Surcharge shall be due and payable each month during the

Initial (and Subsequent) Term(s) of the Shipper's executed

Limited Firm Transportation Service Agreement and is

unaffected by the quantity of gas transported by PG&E

GT-NW to Shipper's delivery point(s) in any month except as

provided for in Paragraphs 3.10 and 3.11 of this rate

schedule.

3.2 Delivery Charge

The Delivery Charge shall be the product of the Delivery Rate

as set forth on Effective Tariff Sheet No. 4, the quantities of

gas delivered in the month (in Dth) (excluding Authorized

Overrun) at point(s) of delivery on Mainline Facilities, and

the distance, in pipeline miles, from the point(s) of receipt

to point(s) of delivery on Mainline Facilities.

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.

(Continued)