Valero Interstate Transmission Company

First Revised Volume No. 1

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

Original Sheet No. 77 Original Sheet No. 77 : Superseded

FORM OF SERVICE AGREEMENT

FOR ITS-1 RATE SCHEDULE

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(continued)

ARTICLE III

RATE SCHEDULE

Shipper shall pay Vitco for all services rendered hereunder at the rate

specified under Vitco's Rate Schedule ITS-1 as filed with the FERC and as

the same may be hereafter revised or changed. In addition, Vitco shall

retain a percent of all gas received (such gas called "Retained Gas") by

Vitco from Shipper hereunder, to insure that Vitco retains a quantity of

gas sufficient to meet its requirements for company use, which shall

include company fuel use and unaccounted for gas. Such percentage shall

be determined pursuant to the terms of Section 3(c) to Rate Schedule ITS-1.

The following are charges which apply to service rendered under this

agreement: (List applicable charges by reference to Section 3 of Rate

Schedule ITS-1 and the quantities of natural gas to which such charges

apply.)

Vitco shall have the right from time to time, by the filing of a

revised Rate Schedule, to increase or decrease rates, to increase or

decrease the quantity of gas retained by Vitco in providing such service,

to change the form of the applicable Rate Schedule and to take such other

further action with respect thereto without further consent by Shipper, and

such changes in rates and other changes shall become the Rate Schedule and

Terms and Conditions under which the gas shall be transported hereunder.

Shipper shall have the right to oppose any of the foregoing and to request

reduction in rates to the extent that Shipper is legally permitted to do so

under the Natural Gas Act.

This Agreement in all respects shall be and remain subject to the

applicable provisions of the said Rate Schedule and of the General Terms

and Conditions of Vitco's FERC Gas Tariff on file with the FERC, all of

which are by this reference made a part hereof.

ARTICLE IV

POINTS OF RECEIPT AND DELIVERY

Natural gas to be received by Vitco from or for the account of Shipper

for transportation hereunder shall be received at the inlet side of the

measuring station(s) at or near the following designated points of receipt