Pacific Gas Transmission Company

First Revised Volume No. 1-A

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

Second Revised Sheet No. 63 Second Revised Sheet No. 63 : Effective

Superseding: First Revised Sheet No. 63

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

9. NOTICE OF CHANGES IN OPERATING CONDITIONS

PG&E GT-NW and Shipper shall each ensure that the other is notified

from time to time as necessary of expected changes in the rates of

delivery or receipt of gas, or in the pressures or other operating

conditions, and the reason for such expected changes, so that they

may be accommodated when they occur.

10. FORCE MAJEURE

10.1 If either party shall fail to perform any obligation imposed

upon it by these Transportation General Terms and Conditions or

by an executed Transportation Service Agreement, and such

failure shall be caused, or materially contributed to, by force

majeure which means any acts of God, strikes, lockouts, or

other industrial disturbances, acts of public enemies,

sabotage, wars, blockades, insurrections, riots, epidemics,

landslides, lightning, earthquakes, floods, storms, fires,

washouts, extreme cold or freezing weather, arrests and

restraints of rulers and people, civil disturbances,

explosions, breakage of or accident to machinery or lines of

pipe, hydrate obstructions of lines of pipe, inability to

obtain pipe, materials or equipment, legislative,

administrative or judicial action which has been resisted in

good faith by all reasonable legal means, any acts, omissions

or causes whether of the kind herein enumerated or otherwise

not reasonably within the control of the party invoking this

paragraph and which by the exercise of due diligence such party

could not have prevented, the necessity for making repairs to,

replacing, or reconditioning machinery, equipment, or

pipelines not resulting from the fault or negligence of the

party invoking this paragraph, such failure shall be deemed not

to be a breach of the obligation of such party, but such party

shall use reasonable diligence to put itself in a position to

carry out its obligations. Nothing contained herein shall be

construed to require either party to settle a strike or lockout

by acceding against its judgment to the demands of the opposing

parties.

(Continued)