Valero Interstate Transmission Company

First Revised Volume No. 1

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

Original Sheet No. 23 Original Sheet No. 23 : Superseded

RATE SCHEDULE FTS-1

Firm Transportation Service

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(continued)

(3) For transportation of gas in Vitco's gathering and trans-

mission systems, Shipper shall within thirty (30) days after

Shippers' receipt of Vitco's statement therefor, pay Vitco an

amount equal to the sum of the FTS-1-GT Reservation Fee plus the

product of the FTS-1-GT Commodity rate, as set forth on Sheet

No. 8 of Vitco's FERC Gas Tariff, First Revised Volume No. 1, or

such portion of such rate as Vitco and Shipper shall have agreed

upon in Shipper's executed service agreement, which portion shall

be not more than the maximum nor less than the minimum set forth

in Vitco's Schedule of Rates times the number of MMBtu of gas

shown on Vitco's statement. The FTS-1-GT Reservation Fee shall be

equal to the product of the "D-1" reservation fee per month per

MMBtu applicable to service hereunder, as set forth on Sheet No. 8

of Vitco's FERC Gas Tariff, First Revised Volume No. 1, times

Shipper's MAXDTQ under Shipper's executed service agreement

hereunder.

Vitco shall retain a percentage of all gas received (such gas

called "Retained Gas") by Vitco from Shipper hereunder for

company fuel use and unaccounted for gas. Such percentage shall

apply to gas received on an MMBtu basis, and shall be an amount

of company use and unaccounted for gas up to 1.5 percent of gas

received for transportation.

4. REIMBURSEMENT OF REGULATORY EXPENSES

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Shipper shall reimburse Vitco for all regulatory filing fees incurred

by Vitco to provide service under Shipper's executed service agreement,

as it may be amended, revised or superseded from time to time. No

regulatory filing fee which is reimbursed shall be included in the

cost of service in any rate filing.

5. MINIMUM BILL

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None