Pacific Gas Transmission Company

First Revised Volume No. 1-A

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

Third Revised Sheet No. 82 Third Revised Sheet No. 82 : Effective

Superseding: Second Revised Sheet No. 82

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

21. BALANCING

Balancing of thermally equivalent quantities of gas received and

delivered by PG&E GT-NW shall be achieved as nearly as feasible on a

daily basis, with any cumulative imbalance accounted for on a

monthly basis. Correction of imbalances shall be the

responsibility of the Shipper whether or not notified by PG&E GT-NW at

the time of incurrence of the imbalance. Correction of imbalances

shall be scheduled with PG&E GT-NW using the nomination process as soon

as an imbalance is known to exist based on the best available

current data. Nominations to correct imbalances shall have the

lowest priority for scheduling purposes and shall be subject to

the availability of capacity and other operational constraints for

imbalance correction. If on any day capacity is insufficient to

schedule all imbalance nominations, all such nominations shall be

prorated accordingly. To maintain the operational integrity of its

system, PG&E GT-NW shall have the right to balance any Shipper's account

as conditions may warrant.

Imbalances shall exist as defined below and be subject to the

applicable charges and penalties if not corrected.

a) Actual delivered quantity exceeds MDQ

An imbalance shall exist if the actual delivered quantity

on any day exceeds the MDQ and the delivered quantity in

excess of the MDQ has not been authorized by PG&E GT-NW

(authorized Overrun).

Penalty: A Shipper shall be assessed $5/Dth for the

quantity that is greater than 10% of the MDQ or 1000 Dth,

whichever is greater.

In addition, the quantity delivered

in excess of the MDQ shall be charged the Authorized

Overrun charge as provided in the applicable rate schedule

of Shipper.

(Continued)