Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 02/21/2003, Docket: RP03-237-002, Status: Effective

Eighth Revised Sheet No. 5B.08 Eighth Revised Sheet No. 5B.08 : Effective

Superseding: Seventh Revised Sheet No. 5B.08

9/ Negotiated rate contract expired; footnote language terminated.

10/ Negotiated rate contract expired; footnote language terminated.

11/ Negotiated rate contract expired; footnote language terminated.

12/ Negotiated rate contract expired; footnote language terminated.

13/ Negotiated rate contract expired; footnote language terminated.

14/ Negotiated rate contract expired; footnote language terminated.

15/ For East to East flow, the reservation rate is $0.035/MMBtu and the commodity rate

is the minimum commodity rate. For East to West flow, the combined reservation and commodity

rate is as follows:

East to West Flow

All West of Thoreau deliveries to SoCal Needles (POI # 10487):

(The commodity price for natural gas as reported in Gas Daily, Daily Price Survey, Others, SoCal gas, large

pkgs., minus the commodity price reported in Gas Daily, Daily Price Survey, El Paso Permian Basin Area, minus

Reservation Charge for East to East flow and minus applicable mainline fuel valued at Gas Daily El Paso

Permian price) multiplied by 0.50. Rate includes all currently applicable surcharges. In no event shall the

resultant rate be less than $0.0246/MMBtu.

All West of Thoreau deliveries to PG&E Topock (POI # 56698):

(The commodity price for natural gas as reported in Gas Daily, Daily Price Survey, Others, PG&E, large Pkgs.,

minus the commodity price reported in Gas Daily, Daily Price Survey, El Paso Permain Basin Area, minus

Reservation Charge for East to East flow and minus applicable mainline fuel valued at Gas Daily El Paso

Permian price) multiplied by 0.50. Rate includes all currently applicable surcharges. In no event shall the

resultant rate be less than $0.0246/MMBtu.

All West of Thoreau deliveries to locations other than PG&E Topock and SoCal Needles:

(The lower of the commodity price for natural gas as reported in Gas Daily, Daily Price Survey, Others, PG&E,

large pkgs. or SoCal gas, large pkgs., minus the commodity price reported in Gas Daily, Daily Price Survey, El

Paso Permian Basin Area, minus Reservation Charge for East to East flow and minus applicable mainline fuel

valued at Gas Daily El Paso Permian price) multiplied by 0.50. Rate includes all currently applicable

surcharges. In no event shall the resultant rate be less than $0.0246/MMBtu.

The term is from June 1, 2002 through May 31, 2003.