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. 167 First Revised Sheet No. 167 : Effective

Superseding: Original Sheet No. 167

FORM OF SERVICE AGREEMENT

APPLICABLE TO INTERRUPTIBLE TRANSPORTATION SERVICE

UNDER RATE SCHEDULE ITS-1

(Continued)

WHEREAS, PG&E GT-NW is willing to transport certain quantities of

natural gas for Shipper, on an interruptible basis,

NOW, THEREFORE, the parties agree as follows:

Governmental Authority

1.1 This Interruptible Transportation Agreement ("Agreement") is made

pursuant to the regulations of the Federal Energy Regulatory

Commission (FERC) contained in 18 CFR Part 284, as amended from

time to time.

1.2 This Agreement is subject to all valid legislation with respect

to the subject matters hereof, either state or federal, and to

all valid present and future decisions, orders, rules, regulations

and ordinances of all duly constituted governmental authorities

having jurisdiction.

1.3 Shipper shall reimburse PG&E GT-NW for any and all filing fees

incurred by PG&E GT-NW in seeking governmental authorization for

the initiation, extension, or termination of service under this

Agreement and Rate Schedule ITS-1. Shipper shall reimburse PG&E

GT-NW for such fees at PG&E GT-NW's designated office within ten

(10) days of receipt of notice from PG&E GT-NW that such fees are

due and payable. Additionally, Shipper shall reimburse PG&E GT-NW

for any and all penalty fees or fines assessed PG&E GT-NW

caused by the negligence of Shipper in not obtaining all proper

Canadian and domestic import/export licenses, surety bonds or any

other documents and approvals related to the Canadian exportation

and subsequent domestic importation of natural gas transported by

PG&E GT-NW hereunder.

(Continued)