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

Third Revised Volume No. 1

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Effective Date: 12/01/1995, Docket: RP94-161-006, Status: Effective

First Revised Sheet No. 42 First Revised Sheet No. 42 : Superseded

Superseding: Original Sheet No. 42

GENERAL TERMS AND CONDITIONS

(Continued)

(a) Turbine Meters. Turbine meters, shall be installed, and Gas volumes

computed, in accordance with Transmission Measurement Committee Report

No. 7 of the American Gas Association, latest edition. Calibration of

turbine meters shall be at or near normal operating pressure, against

standards adopted by U-TOS. The measured volumes of gas shall be

adjusted to reflect the deviation of Gas Volumes from the ideal gas law.

The average pressure, temperature, specific gravity, and carbon dioxide

and nitrogen content for the period under consideration shall be

determined so as to calculate a factor for volumetric adjustment known

as the supercompressibility factor, and its application to volume

calculations to effect volumetric adjustment, shall be in accordance

with Transmission Measurement Committee Reports No. 7, Turbine Metering,

or such subsequent industry standard that may be developed and adopted

by U-TOS.

(b) Orifice Meters. Orifice meters, if used, shall be installed, and Gas

volumes computed, in accordance with American Gas Association Report No.

3, latest edition.

(c) Electronic Flow Computers. It is recognized that electronic flow

computers will be utilized for the direct computation of Gas flows

without the use of charts.

(d) Densitometers. If a densitometer is used, the density of the Gas shall

be determined to the nearest .001 of a pound. Calibration shall be done

as directed by U-TOS.

(e) New Measurement Techniques. If at any time during the term hereof, a

new method or technique is developed with respect to Gas measurement or

the determination of the factors used in such Gas measurement, such new

method or technique may be substituted upon mutual agreement thereto by

the Parties.

3.8 Location of Check Measuring Equipment. Shipper will cause to be provided, free of expense

to U-TOS, the necessary space on offshore platforms for the installation of check

measuring or electronic equipment and such other equipment, as may be necessary, for the

proper control and operation of the System. Shipper will also grant to U-TOS, or cause

to be granted, the right of access to said platforms. U-TOS will indemnify Shipper and

hold it harmless from any claims, suits, or other actions of any kind resulting from any

negligent or unauthorized use or access granted relative to the said platforms.

3.9 Calibration and Test of Meters. The accuracy of all measuring equipment shall be verified

by the owner thereof at reasonable intervals, and if requested, in the presence of

representatives of the other Party hereunder, but neither Shipper nor U-TOS shall be

required to verify theaccuracy of such equipment more frequently than once in any 30-day

period. If either Party at any time desires a special test of any measuring equipment,

it will promptly notify the other, and the Parties shall then cooperate to secure a prompt

verification of the accuracy of such equipment. Transportation and related expenses

incurred by Shipper or U-TOS involved in the testing of meters at offshore locations shall

be borne by the Party incurring such expenses.

3.10 Correction of Metering Errors. If, upon any test, any measuring equipment is found to

be in error, such errors shall be taken into account in a practical manner in computing

the deliveries. If the resultant aggregate error in the computed receipts or deliveries

is not more than 2 percent, then previous receipts or deliveries shall be considered

accurate. All equipment shall, in any case, be adjusted at the time of test to record

correctly. If, however, the resultant aggregate error in computed receipts or deliveries

exceeds 2 percent at a recording corresponding to the average hourly rate of Gas flow for

the period since the last preceding test, the previous recordings of such equipment shall

be corrected to zero error for any period which is known definitely or agreed upon, but

in no event shall such period be greater than 12 months. In case the period is not known

definitely or agreed upon, such correction shall be for a period extending over one-half

of the time elapsed since the date of the last test, not exceeding a correction period

of 16 days.