Pacific Gas Transmission Company

First Revised Volume No. 1-A

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

First Revised Sheet No. 164 First Revised Sheet No. 164 : Effective

Superseding: Original Sheet No. 164

FORM OF SERVICE AGREEMENT

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

(Continued)

VII. MISCELLANEOUS (Continued)

7.5 Nothing in this Agreement shall be deemed to create any rights or

obligations between the parties hereto after the expiration of

the Initial or Subsequent Term(s) set forth herein, except that

expiration of this Agreement shall not relieve either party of the

obligation to correct any quantity imbalances or Shipper of the

obligation to pay any amounts due to PG&E GT-NW to the date of

expiration.

7.6 Shipper warrants for itself, its successors and assigns, that it will

have at the time of delivery of the gas to PG&E GT-NW hereunder good

title to such gas and that all gas delivered to PG&E GT-NW for

transportation hereunder is eligible for all requested transportation

in interstate commerce under applicable rules, regulations or orders

of the FERC, or other agency having jurisdiction. Shipper will

indemnify PG&E GT-NW and save and hold it harmless from all suits,

action, damages (including reasonable attorneys' fees) and costs

connected with regulatory or legal proceedings, arising from the

breach of this warranty.

7.7 This Agreement constitutes the full agreement between Shipper

and PG&E GT-NW and any subsequent changes to this Agreement must

be made in writing by an amendment to this Agreement. This

Agreement may only be amended by an instrument in writing executed

by both parties hereto.

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be

executed as of the day and year first above written.

PG&E GAS TRANSMISSION, NORTHWEST CORPORATION

By: ____________________________

Name: __________________________

Title: President & CEO

Date: __________________________

By: ____________________________

Name: __________________________

Title: _________________________

Date: __________________________