Pacific Gas Transmission Company

First Revised Volume No. 1-A

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

Original Sheet No. 23 Original Sheet No. 23 : Effective

Superseding: No. 23

RATE SCHEDULE LFS-1

LIMITED FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.8 Capacity Release

(a) Releasing Shippers:

Shipper shall have the option to release capacity pursuant

to the provisions of PG&E GT-NW's capacity release program

as specified in the Transportation General Terms and

Conditions. Shipper may release its capacity, up to

Shipper's Maximum Daily Quantity under this rate schedule,

in accordance with the provisions of Paragraph 28 of PG&E

GT-NW's Transportation General Terms and Conditions of this

FERC Gas Tariff, First Revised Volume No. 1-A. Shipper

shall pay a fee associated with the marketing of capacity

by PG&E GT-NW (if applicable) in accordance with Paragraph

28 of the Transportation General Terms and Conditions.

This fee shall be negotiated between PG&E GT-NW and the

Releasing Shipper.

(b) Replacement Shippers:

Shipper may receive released capacity service under this

rate schedule pursuant to Paragraph 28 of the

Transportation General Terms and Conditions and is

required to execute a service agreement in the form

contained for capacity release under Rate Schedule LFS-1

in this First Revised Volume No. 1-A.

All replacement shippers must accept the same provisions

regarding and circumstances relating to Limited Days as

apply under the Releasing Shipper's Agreement, including

the number of Limited Days remaining in an applicable

defined period. Any required capacity release posting

must state and describe the contract provisions relating to

Limited Days. When a Releasing Shipper releases a

volumetric portion of its full contract path, capacity on a

Limited or Partial Volume Day shall be prorated among the

original and replacement Shippers based on their respective

MDQs. When a Releasing Shipper releases a segment of its

full contract path, the number of Limited Days that apply to

the Replacement will be the number of Limited Days that

remain on the Releasing Shipper's Agreement.

(Continued)