Pacific Gas Transmission Company

First Revised Volume No. 1-A

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

First Revised Sheet No. 162 First Revised Sheet No. 162 : Effective

Superseding: Original Sheet No. 162

FORM OF SERVICE AGREEMENT

(Applicable to Service Under Rate Schedule FTS-1 for Capacity Release)

(Continued)

V. OPERATING PROCEDURES

5.1 Shipper shall conform to all of the operating procedures set forth

in the Transportation General Terms and Conditions of the FERC Gas

Tariff First Revised Volume No. 1-A.

5.2 Shipper shall furnish gas for compressor fuel and line loss as set

forth in PG&E GT-NW's Rate Schedule FTS-1.

VI. RATE(S)

6.1 Shipper shall pay PG&E GT-NW each month all rates applicable to

services rendered pursuant to this Agreement in accordance with

PG&E GT-NW's Rate Schedule FTS-1, or superseding rate schedule(s),

and PG&E GT-NW's current Statement of Effective Rates and Charges

in this FERC Gas Tariff First Revised Volume No. 1-A, on file with

and subject to the jurisdiction of the FERC and as adjusted by

Exhibit R of this Agreement. This Agreement in all respects shall

be and remains subject to the applicable provisions of PG&E GT-NW's

Rate Schedule FTS-1, or superseding rate schedule(s), and of the

Transportation General Terms and Conditions of PG&E GT-NW's FERC

Gas Tariff First Revised Volume No. 1-A on file with the FERC, all

of which are by this reference made a part hereof.

6.2 PG&E GT-NW shall have the right from time to time to propose, file

and cause to be made effective with the FERC such changes in the

rates and charges or service obligations applicable to transportation

services pursuant to this Agreement, the rate schedule under which

this service is hereunder provided, or any provisions of PG&E GT-NW's

Transportation General Terms and Conditions applicable to such

services. Shipper shall have the right to protest any such

changes proposed by PG&E GT-NW and to exercise any other rights that

Shipper may have with respect thereto.

(Continued)