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

Third Revised Volume No. 1

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

Original Sheet No. 56A Original Sheet No. 56A : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

described in this Section 16, capacity is awarded to the Qualified Bidder and

the Qualified Bidder executes a Transportation Agreement with U-TOS, the payment

shall be credited to the Qualified Bidder's bill(s) for service under the

Transportation Agreement. In the event that the Qualified Bidder is awarded

capacity but declines to execute a Transportation Agreement with U-TOS, or the

Qualified Bidder withdraws its bid before the right of first refusal procedures

are complete, the Qualified Bidder will be deemed to have forfeited the payment.

Otherwise, in the event that the Qualified Bidder is not awarded capacity, the

payment, together with interets calculated in accordance with Section 154.67(c)

of the Commission's regulations, shall be refunded to the Qualified Bidder upon

completion of the right of first refusal procedures.