Pacific Interstate Offshore Company

Second Revised Volume No. 1

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Effective Date: 10/01/1997, Docket: TM98-1-64-002, Status: Effective

Substitute Fourth Revised Sheet No. 6 Substitute Fourth Revised Sheet No. 6 : Effective

Superseding: Third Revised Sheet No. 6






3. RATE (Cont'd)


3.1 Maximum Rate (cont'd)


3.1.1 Reservation Fee


The monthly Reservation Fee charged under

this Rate Schedule shall be $3.38 per Dth

times the daily Contract Receipt Quantity.


3.1.2 Transportation Charge


The transportation charge under this Rate

Schedule shall be the applicable Annual

Charge Adjustment Clause (ACA), currently

.22 cents per Dth delivered during the

billing month.


3.2 Transporter may charge an individual Shipper a rate

for transportation service under this Rate Schedule

that is less than the Maximum Rate. Transporter

shall submit any reports required by FERC regulations

with respect to any charges at less than the Maximum

Rate defined in Section 3.1.


3.3 Minimum Rate


3.3.1 Minimum Bill


The Minimum Bill is applicable for any

month regardless of gas volumes delivered.


The Minimum Bill is equal to all actual

costs (including a monthly accrual of

principal repayment and interest on debt)

excluding return on equity, related income

taxes, and the portion of depreciation

allocated to equity.