Valero Interstate Transmission Company

First Revised Volume No. 1

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

Original Sheet No. 15 Original Sheet No. 15 : Superseded

RATE SCHEDULE ITS-1

Interruptible Transportation Service

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(continued)

8. TERMINATION FOR DEFAULT

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If either Vitco or Shipper shall fail to perform any of the covenants

or obligations imposed upon it or them under and by virtue of a service

agreement hereunder, then in such event the other party may at its option

terminate such agreement by proceeding as follows: The party not in default

stating specifically the cause for terminating the agreement and declaring

it to be the intention of the party giving notice to terminate the same;

thereupon the party in default shall have 30 days after the service of the

aforesaid notice in which to remedy or remove the cause or causes stated in

the notice for terminating the agreement, and if within said period of 30

days the party in default does so remove and remedy said cause or causes

and fully indemnify the party not in default for any and all consequences

of such breach, by a good and sufficient indemnity bond or otherwise, then

such notice shall be withdrawn and the agreement shall continue in full

force and effect. In case the party in default does not so remedy and

remove the cause or causes or does not so indemnify the party giving the

notice for any and all consequences of such breach, within said period of

30 days, then, after any necessary authorization by regulatory bodies having

jurisdiction, the agreement shall become null and void from and after the

expiration of said period, provided that notice of termination has not been

withdrawn prior thereto. Any termination of such agreement pursuant to the

provisions of this paragraph shall be without prejudice to the right of

Vitco to collect any amounts then due to it and shall be without prejudice

to the right of Shipper to receive any gas which it has delivered to Vitco

but which Vitco has not delivered back to Shipper, although entitled

thereto, and without waiver of any remedy to which the party not in default

may be entitled for violations of such agreement.