Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 11/02/1998, Docket: RP99- 46-001, Status: Effective

Substitute Third Revised Sheet No. 84A Substitute Third Revised Sheet No. 84A : Effective

Superseding: Second Revised Sheet No. 84A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

21. BALANCING (Continued)

(e) Actual delivered quantity exceeds scheduled delivery

quantity

An imbalance shall exist when the quantity delivered

exceeds the quantity scheduled (nominated and confirmed).

Penalty: When the difference between the actual delivered

quantity and the scheduled delivery quantity is in excess

of 10% of the scheduled quantity or 1000 Dth whichever is

greater, the Shipper shall be assessed a charge of $5/Dth

applied to the excess quantity.

Imbalance determinations as described above will be

performed on a daily basis and each daily occurrence will

constitute a separate incident. It is recognized and

understood that more than one penalty provision may apply

to each imbalance incident.

In the event that any penalty would otherwise be

applicable under these provisions as a direct consequence

of any action or failure to take action by PG&E GT-NW or the

failure of any facility under PG&E GT-NW's control, or an event

of force majeure as defined in these Transportation General Terms

and Conditions, said penalty shall not apply.

Interruptible Shippers will be notified whether penalties will

apply on the day their volumes are reduced. PG&E GT-NW shall

waive non-critical penalties for bumped shippers on the day of

the bump. Waiver of non-critical penalties shall not relieve the

shipper from the obligation to take corrective action to

eliminate ongoing imbalances.

The payment of a penalty in dollars pursuant to Paragraph

21 shall under no circumstances be considered as giving

any Shipper the right to deliver or take overrun

quantities.

Upon termination of a Service Agreement, Shipper shall

have 60 days to correct any remaining imbalances. After

his period has elapsed, PG&E GT-NW shall have the right to retain

any negative imbalance quantity without compensation to

the Shipper and shall assess a charge of $5/Dth for any

positive imbalance quantity as applicable.

(Continued)