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

Second Revised Sheet No. 45 Second Revised Sheet No. 45 : Superseded

Superseding: First Revised Sheet No. 45

GENERAL TERMS AND CONDITIONS

(Continued)

5. CREDITWORTHINESS

U-TOS shall not be required to perform or to continue to perform service under Rate

Schedules FT and IT on behalf of any Shipper who is or has become insolvent, or who,

at U-TOS' request, fails within a reasonable period to demonstrate in U-TOS' reasonable

determination, the ability to pay all anticipated transportation charges when due for

at least three (3) months from the time of demonstration; provided, however, such

Shipper may receive service under Rate Schedules FT and IT if Shipper prepays for such

service or furnishes good and sufficient security as determined by U-TOS in its

reasonable discretion, in an amount equal to the cost of performing the service

requested by Shipper for a three month period, such cost to be determined by

multiplying the Shipper's MDQ by the number of days in such three month period

multiplied by the applicable rate per Dth, as set forth on Sheet No. 4 to U-TOS'

F.E.R.C Gas Tariff, Third Revised Volume No. 1. Also refer to Section 2.2(k) and 10.2

of these General Terms and Conditions.

6. RECEIPT AND DELIVERY

6.1 Points of Receipt. The Points of Receipt hereunder shall be the points of

connection between the facilities of U-TOS and the facilities of Shippers or

others at the points on the System where Shippers deliver, or cause to be

delivered, Gas to U-TOS for transportation service. U-TOS will make all Points

of Receipt available to all Shippers, either as Primary Points of Receipt or as

Secondary Points of Receipt, as defined in subsections 6.2 and 6.3 of this

Section 6.

6.2 Primary Points of Receipt. Primary Points of Receipt are those points set forth

on Exhibit A of the Transportation Agreement for which an MDV is stated.

6.3 Secondary Points of Receipt. Secondary Points of Receipt are all Points of

Receipt on U-TOS' System other than Primary Points of Receipt, as defined in

subsection 6.2 of this Section 6.

6.4 Changes in Primary Points of Receipt or in MDV. An FT or IT Shipper shall from

time to time notify U-TOS in writing of its desire for an additional Primary

Point of Receipt or for a change in the MDV at an existing Primary Point of

Receipt and shall furnish in this connection such deliverability, quality and

other relevant information as requested by U-TOS. Such request for change

shall be subject to the capacity provisions described in Sections 3 and 4 of the

Preliminary Statement and U-TOS shall have fifteen (15) days from receipt of

Shipper's written request to evaluate the change with respect to capacity

availability. To the extent capacity is available at the desired receipt point,

such capacity shall be available within one (1) business day after the fifteen

(15) day evaluation period. Exhibit A of the Transportation Agreement shall be

amended and executed by the parties to reflect the authorized change; provided,

however, that the requested changes or additions in the MDV at such Points of

Receipt shall not result in the sum of the MDV at each Point of Receipt in

Exhibit A to exceed the MDQ of such Shipper.

6.5 Receipt Point Priority. The priority for use of Primary Points of Receipt and

Secondary Points of Receipt is set forth in subsection 7.9 of Section 7,

Scheduling Requirements.