Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 09/15/1998, Docket: RP98-375-000, Status: Effective

Fourth Revised Sheet No. 37 Fourth Revised Sheet No. 37 : Effective

Superseding: Third Revised Sheet No. 37

RATE SCHEDULE PS-1 PARKING SERVICE (Continued)

2. APPLICABILITY AND CHARACTER OF SERVICE (Continued)

2.7 In the event PG&E GT-NW does not have sufficient capacity on a

given day to satisfy all nominations to park or withdraw

gas under this rate schedule, PG&E GT-NW shall schedule

nominations in sequence, starting with the nomination of

the Shipper paying the highest rate for service under this

rate schedule. If two or more Shippers are paying the same

rate for service under this rate schedule, the nominations

of such Shippers shall be scheduled on a pro-rata basis,

using confirmed quantities.

2.8 If PG&E GT-NW upon nomination by Shipper fails to schedule

quantities of gas for withdrawals from Shipper's Parking

Account for a period of thirty (30) consecutive days, PG&E

GT-NW will be obligated to purchase the quantity of gas in

Shipper's Parking Account at a price equal to 120% of the

Monthly Contract Index as published in Gas Daily for PG&E GT-NW

(Kingsgate) applicable for the month in which the thirtieth

(30th) day of curtailment occurs.

2.9 PG&E GT-NW may require Shipper to withdraw all, or any portion

of the gas quantities parked by PG&E GT-NW within thirty (30)

days of PG&E GT-NW's notice to Shipper. If Shipper fails to

arrange for the withdrawal of the quantities specified by PG&E

GT-NW in its notice, despite the availability of capacity for

the withdrawal of Shipper's gas under its PS-1 Service

Agreement, PG&E GT-NW shall take title to that portion of

Shipper's PS-1 Parking Account that Shipper was instructed

to withdraw, free and clear of any adverse claims. PG&E GT-NW's

notice to Shipper may be verbal and in such case shall be

followed by a written confirmation. To protect its system,

PG&E GT-NW may require the withdrawal of quantities of gas in

Shipper's Parking Account within 24 hours. In the event

Shipper does not cause the withdrawal of gas within 24

hours, PG&E GT-NW shall have the right to take title to those

quantities of gas in Shipper's Parking Account free and

clear of any adverse claims.

2.10 Not more than thirty (30) days after the termination of the

PS-1 Service Agreement executed by Shipper under this Rate

Schedule, PG&E GT-NW will notify Shipper of Shipper's Parking

Account balance. If there is a balance remaining, Shipper

will nominate for withdrawal such quantities within thirty

(30) days of the date of PG&E GT-NW's notice.

(Continued)