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Original Sheet No. 62A Original Sheet No. 62A : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

(e) All Qualified Bids must be consistent with the limitations on releases set

forth in subsection 17.2 of this Section 17.

(f) Unless the Qualified Bid states otherwise, a Qualified Bid for U-TOS'

maximum reservation charge shall be deemed to include all non-commodity

based charges provided under U-TOS' tariff for the capacity to be

released, including, but not limited to, any F.E.R.C. Order No. 636

transition costs attributable to the capacity to be released. Unless the

Qualified Bid states otherwise, a Qualified Bid for a reservation charge

less than U-TOS' maximum reservation charge shall not include any such

non-commodity based charges not directly included in the reservation

charge stated in U-TOS' tariff.