U-T Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective

Second Revised Sheet No. 8 Second Revised Sheet No. 8 : Superseded

Superseding: First Revised Sheet No. 8

RATE SCHEDULE FT

FIRM TRANSPORTATION SERVICE

1. AVAILABILITY

This rate schedule is available to any party (Shipper) in the U-T Offshore System

(U-TOS) for the transportation of gas on a firm basis, where: (1) U-TOS has determined

that it has sufficient available capacity to perform service requested by Shipper; (2)

the Shipper has demonstrated, to U-TOS' reasonable satisfaction, that it is

creditworthy in accordance with Section 5 of the General Terms and Conditions; (3) the

Shipper has executed a Transportation Agreement with U-TOS for firm service; and (4)

the Shipper has become a party to the "Gas Allocation Agreement".

2. APPLICABILITY AND CHARACTER OF SERVICE

2.1 This rate schedule shall apply to all natural gas transported under a

transportation agreement executed with U-TOS for firm service under this Rate

Schedule.

2.2 Pursuant to this rate schedule, U-TOS will provide firm transportation for

Shipper up to the Maximum Daily Quantity (MDQ) specified in the transportation

agreement. Shipper may tender gas to U-TOS at the Points of Receipt specified

in the agreement, and U-TOS shall receive such gas at the Points of Receipt and

redeliver an Equivalent Volume for the account of Shipper at the Point of

Delivery specified in the agreement.

3. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions of this Tariff are applicable to this Rate Schedule.

4. RATES AND CHARGES

4.1 Transportation Charge. Shipper agrees to pay U-TOS an amount each month

equal to the sum of a reservation charge and a commodity charge

determined as follows:

(a) The reservation charge shall be the product of 100% of Shipper's Maximum

Daily Quantity and U-TOS' effective reservation charge per Dth, as set

forth on Sheet No. 4 of U-TOS' F.E.R.C. Gas Tariff, Third Revised Volume

No. 1.

(b) The commodity charge shall be the product of the monthly volumes of gas,

expressed in Dth, received by U-TOS from Shipper, or for the account of

Shipper, at the Points of Receipt set forth in Exhibit A of Transportation

Agreement, and U-TOS' effective commodity rate per Dth, as set forth on

Sheet No. 4 to U-TOS' F.E.R.C. Gas Tariff, Third Revised Volume No. 1.

4.2 Partial Month's Service. If at the commencement or termination of the

transportation agreement, service is provided for only a portion of a month,

then the monthly reservation charge for such month shall be reduced

proportionately based on the ratio of the number of days that transportation

service was not in effect to the total number of days in such month.

4.3 Minimum Monthly Bill. Equivalent to monthly reservation charge.