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Second Revised Sheet No. 43 Second Revised Sheet No. 43 : Superseded

Superseding: First Revised Sheet No. 43

GENERAL TERMS AND CONDITIONS

(Continued)

3.11 Failure of Measuring Equipment. In the event any measuring equipment is out of

service, or is found registering inaccurately and the error is not determinable

by test, or by previous recordings, receipts or deliveries through such

equipment shall be estimated:

(a) By using the registration of any check meter or meters, if installed and

accurately registering, or in the absence of (a);

(b) By correcting the error if the percentage of error is ascertainable by

calibration, special test, or mathematical calculation, or in the absence

of both (a) and (b) then;

deliveries during preceding periods under similar conditions when the

measuring equipment was registering accurately.

Provided, however, that estimates of receipts or deliveries determined in

accordance with Section 3.10 herein, shall in no event cover a period of time

greater than 6 months from the date such failure of measuring equipment under

this section is known definitely or agreed upon.

3.12 Measurement Corrections. The cutoff for the closing of measurement is five (5)

business days after the business month. If an error is discovered in the

measured quantities, claim therefor shall be made within six (6) months of the

production month in which the claimed error occurred. The time for dispute or

resolution of the claim shall be three (3) months from the date the claim is

made. If there is an agreement as to the amount of an error, any adjustment

shall be made within thirty (30) days of the determination thereof. Such time

limits shall not apply in the case of deliberate omission or misrepresentation,

or mutual mistake of fact.

3.13 Preservation of Records. Shipper and U-TOS shall preserve for a period of at

least three years, or for such other period as may be permitted by public

authority, all test data, charts, and other similar records, but not less than

24 months.

4. GAS QUALITY

4.1 Treatment of Gas. Unless otherwise agreed, the Gas delivered at the Points of

Receipt and the Point of Delivery hereunder shall be Gas which has not been

processed for the removal of liquefiable hydrocarbons; provided, however, that

U-TOS may subject or permit the subjection of said Gas to compression, cooling,

cleaning, or other processes to such an extent as may be required in U-TOS' sole

opinion for its transmission from the Points of Receipt to the Point of

Delivery.

Nothing contained herein shall be construed so as to prevent the use of

conventional separation equipment, including low temperature wellhead separation

units, prior to the delivery of Gas to U-TOS hereunder.