Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 06/01/2001, Docket: RP01-400-000, Status: Effective

Third Revised Sheet No. 102 Third Revised Sheet No. 102 : Effective

Superseding: Second Revised Sheet No. 102

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE (Continued)

28.7 Allocation of Parcels (Continued)

(a) Primary Allocation (Continued)

R = Rate or charge calculated as: The applicable

maximum authorized reservation charge(s) per Dth (or

a volumetric equivalent of the maximum reservation

charge(s) applicable to the Parcel on a 100% load

factor basis) in effect at the time of the bid for

service from the same receipt point to the same

delivery point under the Releasing Shipper's rate

schedule.

i = FERC's annual interest rate divided by 12.

n = number of periods for which the bidder wishes to

contract, not to exceed the maximum periods to be

released by the Releasing Shipper. For releases

greater than or equal to one month, the period is the

number of months. For releases less than one month

the period is the number of days.

A bid queue will be maintained for each individual

Parcel.

Option 3 - Net Revenue. Bids will be given priority

based on the net revenue for the term of the bid.

(Continued)