Valero Interstate Transmission Company

First Revised Volume No. 1

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

Original Sheet No. 67 Original Sheet No. 67 : Superseded

GENERAL TERMS AND CONDITIONS

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(continued)

f. Upon request of Vitco, Shipper shall from time to time submit

estimates of daily, monthly and annual quantities of gas to be

transported, including peak day requirements.

g. Shipper shall endeavor to deliver and receive natural gas in

uniform hourly quantities during any day with operating

variations to be kept to the minimum feasible.

h. Vitco shall not be required to perform or to continue firm service

under this FERC Gas Tariff on behalf of any Shipper who is or has

become insolvent or who, at Vitco's request, fails within a

reasonable period to demonstrate creditworthiness; provided, how-

ever, such Shipper may receive firm service under this FERC Gas

Tariff if Shipper prepays for such service or furnishes good and

sufficient security, as determined by Vitco in its reasonable

discretion, an amount equal to the cost of performing the service

requested by Shipper for a six (6) month period. For purposes of

this FERC Gas Tariff, the insolvency of a Shipper shall be

evidenced by the filing by such Shipper or any parent entity

thereof (hereinafter collectively referred to as "the Shipper")

of a voluntary petition in bankruptcy or the entry of a decree or

order by a court having jurisdiction in the premises adjudging

the Shipper a bankrupt or insolvent, or approving as properly

filed a petition seeking reorganization, arrangement, adjustment

or composition of or in respect of the Shipper under the Federal

Bankruptcy Act or any other applicable federal or state law, or

appointing a receiver, liquidator, assignee, trustee, sequestrator

(or other similar official) of the Shipper or of any substantial

part of its property, or the ordering of the winding-up or liqui-

dation of its affairs, with said order or decree continuing

unstayed and in effect for a period of sixty (60) consecutive days.

7. STATEMENTS AND PAYMENTS

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a. Statements hereunder shall be on a calendar month basis. After

receipt and deliveries have commenced, Vitco shall furnish

Shipper, on or before the fifteenth (15th) of each month, a

statement showing the quantities of gas measured at the Receipt

and Delivery Points, during the preceding calendar month.