Valero Interstate Transmission Company

First Revised Volume No. 1

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

Original Sheet No. 59 Original Sheet No. 59 : Superseded

GENERAL TERMS AND CONDITIONS

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(continued)

h. Unless otherwise provided, all substances, whether or not of

commercial value, including all liquid hydrocarbons of whatever

nature, that Vitco recovers in the course of transporting the

quantities of natural gas tendered hereunder to Vitco shall be

Vitco's sole property and Vitco shall not be obligated to account

to Shipper for any value, whether or not realized by Vitco, that

may attach or be said to attach to such substances.

i. Vitco shall schedule all volumes tendered in sequence as follows:

Pro rata among Vitco's firm sales and transportation customers;

then,

Among customers receiving interruptible sales or transportation

service on a first come/first served basis as follows:

first, among customers who contracted prior to October 9,

1985 for interruptible sales or transportation service,

in order of contract date and according to the provisions

of the applicable sales or transportation contracts; then

second, to and among all other sales and interruptible

transportation customers utilizing Vitco's services on

a first come/first served basis as set forth in Section

5 of these General Terms and Conditions.

j. If, on any day, Vitco determines that the capacity of its mainline

system, or any portion thereof including the points at which gas

is tendered for transportation, is insufficient to serve all sales

and transportation requirements which are otherwise scheduled to

receive service on such day, or to accept the quantities of gas

tendered, capacity which requires allocation shall be allocated

in a manner which results in curtailment of capacity, to zero if

necessary, first to the last volumes scheduled, and then sequen-

tially in reverse order to the scheduling provided for in Section

4(i) to provide service on a first come/first served basis.