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. 84 Third Revised Sheet No. 84 : Effective

Superseding: Second Revised Sheet No. 84

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

21. BALANCING (Continued)

A net negative imbalance shall exist if the difference

between the delivered quantity and the quantity received

taking into account the reduction in quantity for

compressor fuel use, yields a negative result. Commencing

upon notification by PG&E GT-NW of the existence of the

imbalance, Shipper shall have 3 days to correct the

imbalance.

Penalty: If, at the end of the 3 day period the difference

between the actual quantity received and the delivered

quantity is in excess of 10% of the delivered quantity or

1000 Dth, whichever is greater, the Shipper shall be

assessed a penalty of $2/Dth applied to the excess

quantity. If the imbalance is not corrected within 45 days

of PG&E GT-NW's notice of an imbalance, PG&E GT-NW shall be

able to retain the remaining imbalance quantity without

compensation to the Shipper and free and clear of any

adverse claim.

(d) Scheduled delivery quantity exceeds actual delivered

quantity

An imbalance shall exist when the quantity scheduled

(nominated and confirmed) for delivery exceeds the actual

delivered quantity.

Penalty: When the difference between the scheduled

delivery quantity and actual delivered quantity is in

excess of 10% of the actual deliveries, or 1000 Dth,

whichever is greater, the Shipper shall be assessed the

maximum applicable interruptible transportation rate

applied to the excess quantities.

(Continued)