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

Third Revised Volume No. 1

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

First Revised Sheet No. 39 First Revised Sheet No. 39 : Superseded

Superseding: Original Sheet No. 39

GENERAL TERMS AND CONDITIONS

(Continued)

(l) Sale by Affiliated Marketer

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If the Shipper(s) is affiliated with U-TOS or any of the partners in

U-TOS, and will be marketing the Gas to be transported, a statement

whether and by how much the cost of the Gas to the Shipper(s) exceeds the

price to be received for the sale of the Gas by the Shipper(s), after

deducting associated costs, including those incurred for transportation

(i.e., whether and by how much the Gas will be sold at a loss).

2.3 Subsequent Information

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If any of the events or actions described in 2.2(k)(iv) above, shall be

initiated or imposed during the term of service hereunder, Shipper shall provide

notification thereof to U-TOS within two (2) business days of any such initiated

or imposed event or action. Shipper shall also provide, forthwith, such

additional Shipper credit information as may be reasonably required by U-TOS,

at any time during the term of service hereunder, to determine Shipper's

creditworthiness. Also refer to Section 5 of these General Terms and

Conditions.

2.4 Request Validity

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Shipper's Request for Transportation Service shall be considered null and

void if U-TOS has tendered an Agreement for execution to Shipper and

Shipper fails to execute the Agreement within thirty (30) days

thereafter. In determining whether it is feasible to execute an

Agreement, in light of available capacity, relative to service under Rate

Schedule FT, after provision for existing requirements on its system,

operating constraints and pending requests for service, U-TOS will not

tender an agreement which relates to requests for firm service for which

it does not have sufficient available capacity, relative to service under

Rate Schedule FT, or service which Shipper does not desire to or cannot

begin within fifteen (15) days after the execution of the Agreement, or

such other period as the parties may agree to in writing.

2.5 Shipper's Performance

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If a Shipper that has executed an Agreement for interruptible transportation

service fails, on the later of the date service is to commence or 30 days after

the Shipper executes the Agreement or the completion of construction of any

necessary facilities or the issuance of any necessary governmental

authorization, to nominate, pursuant to Section 7.1 of these General Terms and

Conditions, a quantity of Gas for transportation, or fails, having nominated a

quantity of Gas and U-TOS having scheduled the quantity for transportation,

pursuant to Section 7.8 of these General Terms and Conditions, to tender such

Gas for transportation on the date it is scheduled, U-TOS may terminate

Shipper's Agreement and the Shipper's request for service shall be deemed null

and void; provided, however, that the Shipper's Agreement shall not be

terminated nor shall the Shipper's request for service be deemed null and void

if the Shipper's failure to nominate or tender is caused by an event of force

majeure on U-TOS' system, as defined in Section 13 of these General Terms and

Conditions.