Valero Interstate Transmission Company

First Revised Volume No. 1

Effective Date: 11/01/1991, Docket: GT91- 42-000, Status: Effective

Original Sheet No. 14 Original Sheet No. 14 : Superseded

RATE SCHEDULE ITS-1

Interruptible Transportation Service

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(continued)

(3) Shipper's gas will be deemed to be in Shipper's posses-

sion, control and custody from the time it is delivered by Vitco

to the processing plant until it is received by Vitco at the

tailgate of such plant. Shipper agrees to indemnify and hold

harmless Vitco from and against any and all claims, liabilities,

losses and expenses arising out of the operation of the processing

plant or Shipper's possession of such gas during such processing.

(4) The quantity of gas that Vitco shall be obligated to

deliver to Shipper at the points of delivery shall be reduced by

the amount of the plant volume reduction due to processing of

Shipper's gas, plant volume reduction including plant fuel,

shrinkage, and all other losses and reductions through the plant.

The amount of the plant volume reduction shall be provided by the

plant operator on behalf of Shipper, and Vitco shall be entitled

to rely on the plant operator's information; provided, however,

Shipper shall acquire and maintain for Vitco the right to inspect

the plant operator's books and records to verify such information.

(5) The residue gas shall be delivered to Vitco at the

tailgate of the plant at the pressure sufficient to enter Vitco's

system, but not less than thirty-five (35) pounds below the

pressure at which the gas was delivered to the processing plant

by Vitco, and at a temperature not exceeding one hundred twenty

degrees Fahrenheit (120 F). The residue gas returned to Vitco

shall conform to the quality provisions set forth in Vitco's FERC

Gas Tariff, First Revised Volume No. 1.

7. TERM

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The term of any service agreement under this rate schedule shall be

as set out in the service agreement between Vitco and Shipper.