Valero Interstate Transmission Company

First Revised Volume No. 1

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

Original Sheet No. 24 Original Sheet No. 24 : Superseded

RATE SCHEDULE FTS-1

Firm Transportation Service

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(continued)

6. RECEIPTS AND DELIVERIES

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(a) Shipper will make deliveries of gas to Vitco for transportation

hereunder at mutually agreeable points of receipt on Vitco's

system, as described in the executed service agreement. Prior to

the initial receipt of such gas, Shipper shall reimburse Vitco for

the cost of any facilities that Shipper has agreed to reimburse

Vitco for constructing and that Vitco may have agreed to install

to receive, transport or deliver Shipper's gas.

(b) All gas tendered by Shipper for transportation hereunder shall

conform to the quality provisions of the General Terms and

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

portation of Shipper's gas Vitco shall deliver such gas to a

mutually agreeable processing plant on Vitco's system prior to

Vitco's delivery of such gas back to Shipper at the points of

delivery, the following condition shall apply:

(1) Shipper warrants that it has the right to have such gas

processed, and Shipper indemnifies Vitco against any claims that

may arise out of such processing.

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

deliver to the processing plant shall be the total quantity of

gas received by Vitco at the points of receipt, less Retained Gas.

(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.