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

Third Revised Volume No. 1

Effective Date: 09/28/1999, Docket: TESTB, Status: Effective

First Revised Sheet No. 57 First Revised Sheet No. 57 : Superseded

Superseding: Original Sheet No. 57

GENERAL TERMS AND CONDITIONS

(Continued)

U-TOS may rely exclusively on the effective PDA's or on the pro

rata allocation (based on scheduled nominations) in the absence

of an effective PDA, in allocating the gas at each U-TOS

measurement point, and such allocations shall be binding on the

Shipper. No retroactive changes to the PDA may be made unless

U-TOS, the Designated Allocator, and all Shippers covered by the

PDA agree. Further, U-TOS shall not be liable to any Shipper

as a result of U-TOS' reliance on any PDA methodology provided

herein and Shipper shall indemnify U-TOS from and against any and

all losses, damages, expenses and claims as a result of U-TOS'

reliance on such PDA methodology.

7.6 Predetermined Allocations. The designated Allocator shall

furnish U-TOS with a PDA, by completing the PDA Form set forth

on Sheet No. 160 of this tariff after or during confirmation,

but in any event, before the start of the gas day. Such PDA

shall specify how any underage and/or overage from the

scheduled nomination should be allocated. The PDA shall include

all Shippers that have scheduled nominations with U-TOS at given

metering Point. Examples of allocation methods that can be used

include percentages, pro rata, ranking, swing with specified

shippers, and Operator Provided Value. The same standard

allocation methodologies should be available for use at all

points.

The Designated Allocator may submit the PDA in writing via mail,

facsimile, messenger or Electronic Delivery Mechanism. U-TOS

shall acknowledge receipt and acceptance of the PDA by signing

and telefaxing (or returning via some other mutually agreeable

means) the PDA to the Designated Allocator within fifteen (15)

minutes.

7.7 Changes in Predetermined Allocations. The PDA accepted by U-TOS

will continue in effect through the end of the period covered by

the PDA unless the Designated Allocator submits a revised PDA.

Submittal of a revised PDA, and acceptance by U-TOS, shall be

substantially as described in Section 7.6 above. The Designated

Allocator shall furnish U-TOS with the revised PDA after or

during confirmation of nominations and before the start of the

gas day for which the proposed change is to take effect.