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

First Revised Sheet No. 60 First Revised Sheet No. 60 : Superseded

Superseding: Original Sheet No. 60

GENERAL TERMS AND CONDITIONS

(Continued)

(c) The amount (numeric quantity) of firm capacity, by receipt point, delivery

point, and in total, that the Releasing Shipper wants to release on a per

day basis or that will be released in the Prearranged Transaction, as

applicable, and, for long-term (i.e., one calendar month or longer)

Prearranged Transactions, the amount of any additional capacity that the

Releasing Shipper is willing to release, by receipt point and delivery

point;

(d) The period of time for which the Releasing Shipper wants to release the

capacity or for which capacity will be released in a Prearranged

Transaction, as applicable, and, for long- term Prearranged Transactions,

the duration of any additional period of time that the Releasing Shipper

is willing to make the capacity available;

(e) The minimum reservation charge at which the Releasing Shipper is willing

to make the capacity available (within the range from $0 to the maximum

reservation charge specified on the then-effective Sheet No. 4 of this

tariff for the Releasing Shipper, or the volumetric equivalent thereof),

and, for Prearranged Transactions, the reservation charge that would be

paid for the capacity or for a release on a volumetric basis, the

volumetric commitments, and/or any other minimum conditions. The rate

specified may be in dollars and cents or percents of maximum tariff rates,

but in any event, Releasing Shipper must state any rates equal to the

number of decimal places in the stated rates per U-TOS' rate schedules.

The maximum/minimum rates specified by the Releasing Shipper shall include

the tariff reservation rate and all demand surcharges, as a total number

or as stated separately;

(f) Whether the release of capacity in the proposed release or the Prearranged

Transaction, as applicable, would be subject to interruption or recall,

and, if so, the non-discriminatory conditions, consistent with subsection

17.12(e) of this Section 17, under which the non-discriminatory capacity

may be interrupted or recalled;

(g) If capacity is interrupted or recalled, whether the Replacement Shipper

will have the option to refuse the capacity after a recall or interruption

has ended;

(h) Whether the Releasing Shipper wants U-TOS to actively market the Release

Proposal;

(i) At Releasing Shipper's option and in lieu of U-TOS implementing the "best

bid" determination stated in subsection 17.7, Releasing Shipper may

specify in the Release Proposal one of the following bid evaluation

methodologies: (1) highest rate, (ii) net revenue, or (iii) present value.

A Release Proposal submitted specifying one of these methods may be

accorded the timeline treatment described in Section 17.5. However, the

Releasing Shipper may choose another bid evaluation method, but this

request shall be accorded the timeline treatment described in Section 17.5

only at the discretion of U-TOS. Such bid evaluation methods shall be

objectively stated, applicable to all Replacement or Prearranged Shippers

and not unduly discriminatory and shall enable U-TOS to rank the bids

received by utilizing the weight assigned by Releasing Shipper to each

element of the Releasing Shipper's Notice;

(j) Whether contingent bids will be accepted and if so, for what time period

each contingent bidder will be allowed to eliminate the contingency; and,

if not eliminated, all details concerning the evaluation of other bids,

including the time period when the next highest bidder will be obligated

to acquire the capacity; and