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

Third Revised Volume No. 1

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Effective Date: 11/01/1997, Docket: RP97-146-005, Status: Effective

Second Revised Sheet No. 67A Second Revised Sheet No. 67A : Superseded

Superseding: First Revised Sheet No. 67A

GENERAL TERMS AND CONDITIONS

(Continued)

pursuant to its contract, with a concurrent conditional credit for payment

of the reservation charge and reservation surcharge due from the

Replacement Shipper. This bill shall include an itemization of credits and

adjustments associated with each release transaction. Releasing Shipper

shall also be billed a marketing fee, if applicable, pursuant to the

provisions of subsection 17.10 of this Section 17. A Replacement Shipper

who re-releases acquired capacity shall pay to U-TOS a marketing fee, if

applicable. If a Replacement Shipper does not make payment to U-TOS of

the reservation charge and reservation surcharge, if any, due as set forth

in Section 10 of the General Terms and Conditions, U-TOS shall notify the

Releasing Shipper of the amount due, including all applicable late charges

authorized by Section 10 of the General Terms and Conditions and such

amount shall be paid by the Releasing Shipper. In addition, Releasing

Shipper may terminate the release of capacity to a Replacement Shipper if

such Replacement Shipper fails to pay all of the amount of any bill for

gas delivered under the executed Transportation Agreement when such amount

is due. Once terminated, capacity and all applicable charges shall revert

to the Releasing Shipper. All payments received from a Replacement

Shipper shall first be applied to the reservation charge due for the

transportation service and then to any reservation surcharge, including

late charges related solely to such reservation charges, then to any

penalty due, then to usage charges, and last to late charges not related

to any reservation charges due.

If the Transportation Agreement between U-TOS and the Replacement Shipper

specifies a reservation charge for the released capacity that is higher

than the reservation charge specified in the underlying Transportation

Agreement with U-TOS and the Releasing Shipper, then any revenues that

U-TOS collects from the Replacement Shipper that are based on the

difference between the specified reservation charges which remain after

payment of the items specified in the last sentence of the immediately

preceding paragraph shall be credited to the Releasing Shipper.

17.13 Conversion between Monthly and Daily Reservation Rates. For less than maximum

rate transactions only, converting a daily rate to a monthly rate shall be

accomplished by multiplying the daily rate times number of days in rate period,

dividing the result by number of months in rate period and taking the remainder

out to 5 decimal places and rounding up or down to the number of decimal places

that correspond to U-TOS' maximum rates. Converting a monthly rate to a daily

rate shall be accomplished by multiplying the monthly rate by number of months

in rate period; dividing the result by number of days in rate period and taking

the remainder out to 5 decimal places and rounding up or down to the number of

decimal places that correspond to U-TOS' maximum rates.

17.14 Capacity release historical data shall be made available, upon request, on a

consistent basis by U-TOS for a period of 3 years.