Valero Interstate Transmission Company

First Revised Volume No. 1

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

Original Sheet No. 66 Original Sheet No. 66 : Superseded

GENERAL TERMS AND CONDITIONS

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(continued)

(iii) Paragraph deleted pursuant to Order No. 500-K,

Commission Order dated April 4, 1991.

(iv) Affiliated marketer loses. If the entity for which

transportation is requested is a Vitco affiliate,

specify whether and by how much the cost of the gas to

the Vitco affiliate exceeds the price received for the

sale of the gas by the Vitco affiliate, after deducting

associated costs, including those incurred for

transportation (i.e., whether the gas is being sold at

a loss). Shipper shall cause this information to be

supplied by Vitco's affiliate.

In the event Shipper fails to provide the foregoing information

and the information required by Vitco's Transportation Request

Form included in Vitco's FERC Gas Tariff in order to qualify for

ITS-1 service, Shipper shall not be entitled to schedule gas for

transportation by Vitco until Shipper provides such information

to Vitco.

e. Vitco shall not be required to perform or continue service on behalf

of any Shipper that fails to comply with the terms contained in this

Section 6 and any and all terms of the applicable Rate Schedule and

the terms of Shipper's Transportation Service Agreement with Vitco.

Vitco shall have the right to waive any one or more specific defaults

by any Shipper under paragraphs f through h, inclusive, or any

provision of the applicable Rate Schedule or Transportation Service

Agreement; provided, however, that no such waiver shall operate or be

construed as a waiver of any other existing or future default or

defaults, whether of a like or different character.