U-T Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective

First Revised Sheet No. 51 First Revised Sheet No. 51 : Superseded

Superseding: Substitute Original Sheet No. 51







(d) In the event "Natural Gas Week" ceases to publish entirely or fails to

publish the index prices listed in subsection (b) above, the following

procedures shall apply in determining a month's AMIP:


(1) Should, in any given week, "Natural Gas Week" fail to publish one of

the two index prices used in determining that week's WIP, the WIP

will be determined using the remaining published index price.


(2) Should, in any given week, "Natural Gas Week" fail to publish both

of the index prices used in determining that week's WIP, there will

be no WIP for that week used in determining the month's AMIP.


(e) In the event the foregoing prices are no longer available or valid, U-TOS

will file to change the Tariff and may, at its discretion, select a

representative price in the interim period, subject to adjustment.


8.4 Purchase and Sale of Gas. U-TOS is not providing a supply service under any

Rate Schedule of this Tariff. Without limitation of the foregoing, U-TOS may

buy and sell gas to the extent necessary to maintain system pressure, to

maintain line pack and provide additional line pack for new facilities, to

implement the cashout procedures under this Section 8 and to perform other

functions in connection with providing transportation service. Such sales shall

be authorized pursuant to U-TOS' blanket sales certificate. Nothing herein

shall impose on U-TOS any obligation to provide a supply function to any of its

transportation Shippers.


8.5 Refund of Cash-Out Revenues in Excess of Costs.


(a) This subsection of Section 8 sets forth the procedures under which U-TOS

will refund or carry forward, for each annual billing period, any

difference between the revenues received by Seller and the costs incurred

by Seller under the cash-out provisions of U-TOS' firm and interruptible

transportation rate schedules. For purposes of this subsection 8.5, an

annual billing period shall be the twelve month period commencing each

November 1 and ending the following October 31 with the first such annual

billing period commencing November 1, 1993 and ending October 31, 1994.


(b) Subsequent to the end of each annual billing period U-TOS shall compare

the revenues received by U-TOS under the cash-out procedures with the

costs incurred by U-TOS under such cash-out procedures. If the revenues

received exceed the costs incurred, then U-TOS shall refund, within 60

days of the end of the annual billing period, the net overrecoveries to

firm and interruptible transportation customers on a pro rata basis in

accordance with the transportation volumes U-TOS has delivered during the

annual billing period. If the revenues received are less than the costs

incurred, then U-TOS shall carry forward the net underrecoveries to the

subsequent annual billing period and may offset such net underrecoveries

against any future net overrecoveries that may occur in a subsequent

annual billing period.




9.1 Pressure at the Points of Receipt. Shipper shall cause the gas to be delivered

at the Points of Receipt at a pressure sufficient to allow the Gas to enter the