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

Third Revised Volume No. 1

Effective Date: 12/01/1996, Docket: RP97- 65-000, Status: Effective

First Revised Sheet No. 71 First Revised Sheet No. 71 : Superseded

Superseding: Substitute Original Sheet No. 71

GENERAL TERMS AND CONDITIONS

(Continued)

19. CONSTRUCTION OF DELIVERY LATERALS

Unless otherwise agreed to in writing, U-TOS shall not be required to construct, own, or operate

delivery lateral facilities. In the event that U-TOS does agree to construct, own, or operate

delivery lateral facilities, it will do so in a nondiscriminatory manner, and U-TOS may require

the reimbursement of the costs associated therewith as agreed to by the parties. Nothing herein

shall require U-TOS to file an application for a certificate of public convenience and necessity

under Section 7(c) of the Natural Gas Act, nor shall anything herein be construed to authorize

the filing of such an application by others on its behalf. Moreover, nothing herein shall

prevent U-TOS from contesting an application for service filed pursuant to Section 7(a) of the

Natural Gas Act. U-TOS reserves the right to seek a waiver of the policy set forth herein for

good cause shown.