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

Third Revised Volume No. 1

Effective Date: 08/01/1999, Docket: RP99-462-003, Status: Effective

2nd Sub Thirteenth Revised Sheet No. 73 2nd Sub Thirteenth Revised Sheet No. 73 : Superseded

Superseding: Sub Twelfth Revised Sheet No. 73

GENERAL TERMS AND CONDITIONS

(Continued)

21. NEW FACILITIES COSTS

U-TOS shall be entitled to submit filings under Section 4 of the Natural

Gas Act and the Commission's Regulations and to recover capital costs of

new facilities incurred as a result of the restructuring of U-TOS'

services pursuant to the provisions of Order Nos. 636 et seq. Such costs

shall include, but not be limited to, electronic measurement and

communication facilities; flow control equipment; other facility

costs (including pre-tax rate of return times net rate base;

depreciation; and an allowance for ad valorem taxes).

22. ORDER OF DISCOUNTING SURCHARGES

U-TOS neither discounts its rates nor has any rate surcharge components

for which to establish an order of discounting.

23. PERIODIC REPORTS

U-TOS is required to file no periodic reports pursuant to Commission

order or to a settlement in a proceeding initiated under Parts 154 or 284

of the regulations of the Federal Energy Regulatory Commission.

24. COMPLIANCE WITH 18 C.F.R. 284.10

U-TOS incorporates by reference each of the following Business Practice

and Electronic Communication Standards which were required by the

Commission in 18 C.F.R. 284.10(b) in accordance with Order No. 587

issued July 17, 1996, Order No. 587-B issued January 30, 1997, Order

No. 587-C issued March 4, 1997, Order No. 587-G issued April 16,

1998, Order No. 587-H issued July 15, 1998 and Order No. 587-K issued

April 2, 1999.

1.2.1 (Ver. 1.3)

1.2.2 (Ver. 1.3)

1.2.5 (Ver. 1.3)

1.2.6 (Ver. 1.3)

1.2.8 (Ver. 1.3)

1.2.9 (Ver. 1.3)

1.2.10 (Ver. 1.3)

1.2.11 (Ver. 1.3)

1.2.12 (Ver. 1.3)

1.3.2(vi) (Ver. 1.3)

1.3.3 (Ver. 1.3)