Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 06/01/2002, Docket: RP97-288-023, Status: Effective

Thirteenth Revised Sheet No. 29 Thirteenth Revised Sheet No. 29 : Effective

Superseding: Twelfth Revised Sheet No. 29

RATE SCHEDULE ITS 1

Interruptible Transportation Service

(continued)

3. RATE

3.1 Transport Charge: For transportation of natural gas on

Transporter's system, the charge for service under this Rate

Schedule shall be the applicable Transport Charge for Rate Schedule

ITS-1 multiplied by the quantity of gas scheduled during the month.

The Maximum Transport Charge shall include (1) Maximum Transmission

Charge, as applicable, and (2) all applicable surcharges, as set

forth on the currently effective Rate Sheets of this Tariff. In

addition, Shipper shall deliver at the point of receipt under the

ITS-1 Service Agreement, Transport Fuel, as set forth on the

currently effective Rate Sheets of this Tariff.

3.2 Transporter may, from time to time and at any time at its sole

discretion, charge any individual Shipper for transportation

service under Rate Schedule ITS-1 a Transport Charge which is lower

than the applicable Maximum Transport Charge set forth on the

currently effective Rate Sheets, provided, however, that such rate

charged may not be less than the applicable Minimum Rate set forth

on the currently effective Rate Sheets for Rate Schedule ITS-1.

3.3 Transporter shall file with the Commission any and all reports as

required by the Commission's Regulations setting forth the

applicable charge, the individual Shipper(s) affected, the volume

transported and any other information which may be required.

3.4 Negotiated Rates: Transporter and Shipper may mutually agree to

rates for services that may be below the minimum rates or above the

maximum rates set forth on the currently effective Rate Sheets for

Rate Schedule ITS-1. For each Negotiated Rate transaction, Transporter

shall file, at least one day prior to the commencement of service,

tariff sheets which include the Shipper, the rate or formula used to

calculate the rate, the term, the volume, and the receipt and delivery

points applicable to the service.