Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 12 First Revised Volume No. 1-A Superseding First Revised Sheet No. 12 ________________________________________________________________________________ EXHIBIT 10.1 RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE 1. AVAILABILITY This rate schedule is available to any party (hereinafter called "Shipper") qualifying for service pursuant to the Commission's Regulations contained in 18 CFR Part 284, and who has executed a Firm Transportation Service Agreement with PGT in the form contained in this FERC Gas Tariff First Revised Volume No. 1-A. 2. APPLICABILITY AND CHARACTER OF SERVICE This rate schedule shall apply to firm gas transportation services performed by PGT for Shipper pursuant to the executed Firm Transportation Service Agreement between PGT and Shipper. PGT shall receive from Shipper such daily quantities of gas up to the Shipper's Maximum Daily Quantity as specified in the executed Firm Transportation Service Agreement between PGT and Shipper plus the required quantity of gas for fuel and line loss associated with service under this Rate Schedule FTS-1 and redeliver an amount equal to the quantity received less the required quantity of gas for fuel and line loss. This transportation service shall be firm and not subject to curtailment or interruption except as provided in the Transportation General Terms and Conditions. Firm transportation service shall be subject to all provisions of the executed Firm Transportation Service Agreement between PGT and Shipper and the applicable Transportation General Terms and Conditions. 3. RATES Shipper shall pay PGT each month the sum of the Reservation Charge, the Delivery Charge, plus any applicable Extension Charge, Overrun Charge and applicable surcharges for the quantities of natural gas delivered. The rate(s) set forth in PGT's current Statement of Effective Rates and Charges for Transportation of Natural Gas in this FERC Gas Tariff First Revised Volume No. 1-A are applied to transportation service rendered under this rate schedule. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 13 First Revised Volume No. 1-A Superseding First Revised Sheet No. 13 ________________________________________________________________________________ RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE (Continued) 3.RATES (Continued) 3.1 Reservation Charge The Reservation Charge shall be the sum of the Mileage and the Non- Mileage Component: (a) Mileage Component The Mileage Component shall be the product of the currently effective Mileage Rate as set forth on Effective Tariff Sheet No. 4, the distance, in pipeline miles, from the Primary Point(s) of receipt to the Primary Point(s) of Delivery on Mainline Facilities as set forth in Shipper's Contract, and the Shipper's Maximum Daily Quantity at such Point(s). (b) Non-Mileage Component The Non-Mileage Component shall be the product of the currently effective Non-Mileage Rate as set forth on Effective Tariff Sheet No. 4 and the Shipper's Maximum Daily Quantity at Primary Point(s) of Delivery on Mainline Facilities. (c) Mitigation Revenue Recovery Surcharge If Shipper is a Subject Shipper, the Mitigation Revenue Recovery Surcharge for the Mileage and Non-Mileage Components as set forth on Effective Tariff Sheet No. 4 shall be included in, and become a part of, the maximum Mileage and Non-Mileage Base Reservation Rates used for computing the Mileage and Non-Mileage Components of the Reservation Charge. The Mileage Component shall be designed to recover, on the basis of the mileage billing determinants of the Subject Shippers underlying PGT's currently effective rates, mileage mitigation revenues not recovered from other shippers in accordance with Article IV, Section 1(b) of the Stipulation and Agreement in Docket No. RP94-149-000, et al., and the Non-Mileage Component shall be designed to recover, on the basis of the Non-Mileage billing determinants of the Subject Shippers underlying PGT's currently effective rates, Non-Mileage mitigation revenues not recovered from other shippers in accordance with Article IV, Section 1(b) of the Stipulation and Agreement in Docket No. RP94-149-000, et al. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 13A First Revised Volume No. 1-A ________________________________________________________________________________ RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE (Continued) 3.RATES (Continued) 3.1 Reservation Charge (Continued) (d) Shipper's obligation to pay the Reservation Charge and applicable Reservation Surcharge is independent of Shipper's ability to obtain export authorization from the National Energy Board of Canada, Canadian provincial removal authority, and/or import authorization from the United States Department of Energy, and shall begin with the execution of the Firm Transportation Service Agreement by both parties. The Reservation Charge and Reservation Surcharge due and payable shall be computed beginning in the month in which service is first available (prorated if beginning in the month in which service is available on a date other than the first day of the month). Thereafter, the monthly Reservation Charge and Reservation Surcharge shall be due and payable each month during the Initial (and Subsequent) Term(s) of the Shipper's executed Firm Transportation Service Agreement and is unaffected by the quantity of gas transported by PGT to Shipper's delivery point(s) in any month except as provided for in Paragraphs 3.10 and 3.11 of this rate schedule. 3.2 Delivery Charge The Delivery Charge shall be the product of the Delivery Rate as set forth on Effective Tariff Sheet No. 4, the quantities of gas delivered in the month (in MMBtu) (excluding Authorized Overrun) at point(s) of delivery on Mainline Facilities, and the distance, in pipeline miles, from the point(s) of receipt to point(s) of delivery on Mainline Facilities. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 14 First Revised Volume No. 1-A Superseding First Revised Sheet No. 14 ________________________________________________________________________________ RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE (Continued) 3. RATES (Continued) 3.3 Extension Charge If Shipper designates a Primary Point of delivery on an Extension Facility, then in addition to all other charges that are applicable, Shipper shall pay the Extension Charge, which shall consist of a reservation and delivery component. (a) The reservation component of the Extension Charge shall be the product of Shipper's Maximum Daily Quantity at the Primary Point(s) of delivery on the Extension Facility, the applicable Extension reservation rate as set forth on Effective Tariff Sheet No. 4, and the distance, in pipeline miles, from the Receipt Point(s) on the Extension Facility to the Primary Point(s) of delivery. (b) The delivery component of the Extension Surcharge shall be the product of the quantities delivered at the point(s) of delivery on the Extension Facility, the applicable Extension delivery rate as set forth on Effective Tariff Sheet No. 4, and the distance, in pipeline miles, from the Receipt Point(s) on the Extension Facility to the point(s) of delivery. 3.4 Authorized Overrun Charge Quantities in excess of Shipper's MDQ shall be transported when capacity is available on the PGT system and when the provision of such Authorized Overruns shall not effect any Shipper's rights on the PGT System. Authorized Overruns are interruptible in nature. The rate charged shall be the same as the rates and charges for interruptible transportation under Rate Schedule ITS-1 as set forth on effective tariff Sheet No. 4, and such Authorized Overruns shall be subject to the priority of service provisions of Paragraph 19 of the Transportation General Terms and Conditions. 3.5 Applicability of Surcharges Shipper shall pay all reservation and usage surcharges applicable to the service provided to such Shipper as set forth in PGT's FERC Gas Tariff, First Revised Volume No. 1-A. Such surcharges shall be deemed to be part of Shipper's Reservation and Delivery Charges. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 14A First Revised Volume No. 1-A ________________________________________________________________________________ RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE (Continued) 3. RATES (Continued) 3.6 Shipper shall pay the Reservation Charge, and the Maximum Delivery Charge for service under this Rate Schedule unless PGT offers to discount the Mileage Rate components or the Non-Mileage Rate components of the Reservation Rate or the Delivery Rate or the GRI surcharge under this rate schedule. If PGT elects to discount any such rate, PGT shall, up to forty-eight (48) hours prior to such discount, by written notice, advise Shipper of the effective date of such charges and the quantity of gas so affected; provided, however, such discount shall not be anticompetitive or unduly discriminatory between individual shippers. The rates for service under this rate schedule shall not be discounted below the Minimum Reservation Charge, the Minimum Delivery Rate, and applicable GSR and ACA Surcharges. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 15 First Revised Volume No. 1-A Superseding Original Sheet No. 15 ________________________________________________________________________________ RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE (Continued) 3. RATES (Continued) 3.7 Gas Supply Restructuring (GSR) Transition Cost Surcharge Shipper shall pay a GSR Transition Cost Surcharge for PGT's approved GSR costs as defined in Paragraph 30 of the Transportation General Terms and Conditions. This surcharge is stated on the Statement of Effective Rates and Charges and is defined in Paragraph 30 of the Transportation General Terms and Conditions. The surcharge shall be the product of the surcharge rate, the quantities of gas delivered during the month and the distance in pipeline miles from the point(s) of receipt to the point(s) of delivery. 3.8 Backhauls or upstream deliveries shall be subject to the same charges as forward haul or downstream transportation arrangements except that no gas shall be retained by PGT for compressor station fuel, line loss and other unaccounted-for gas. 3.9 Direct Bills PG&E shall pay a Direct Bill for 100% of the costs allocated to the Direct Bill portion of Approved Gas Supply Restructuring (GSR) Costs excluding the amount to be collected from the Northwest Shippers as defined in Paragraph 30 of the Transportation General Terms and Conditions and credited against the Direct Bill portion of Approved GSR Costs as defined in Paragraph 30 of the Transportation General Terms and Conditions. In accordance with Paragraph 30.5(b) of the Transportation General Terms and Conditions, PG&E may elect to pay its Direct Bill in a lump sum or select one of three payment plans as shown on the Statement of Rates and Charges for Transportation of Natural Gas. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 16 First Revised Volume No. 1-A Superseding Original Sheet No. 16 ________________________________________________________________________________ RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE (Continued) 3. RATES (Continued) 3.10 Capacity Release (a) Releasing Shippers: Shipper shall have the option to release capacity pursuant to the provisions of PGT's capacity release program as specified in the Transportation General Terms and Conditions. Shipper may release its capacity, up to Shipper's Maximum Daily Quantity under this rate schedule, in accordance with the provisions of Paragraph 28 of PGT's Transportation General Terms and Conditions of this FERC Gas Tariff, First Revised Volume No. 1- A. Shipper shall pay a fee associated with the marketing of capacity by PGT (if applicable) in accordance with Paragraph 28 of the Transportation General Terms and Conditions. This fee shall be negotiated between PGT and the Releasing Shipper. (b) Replacement Shippers: Shipper may receive released capacity service under this rate schedule pursuant to Paragraph 28 of the Transportation General Terms and Conditions and is required to execute a service agreement in the form contained for capacity release under Rate Schedule FTS-1 in this First Revised Volume No. 1-A. Shipper shall pay PGT each month for transportation service under this rate schedule and as set forth in PGT's current Statement of Effective Rates and Charges in this First Revised Volume No. 1-A. Charges to be paid shall be the sum of the Reservation Charge, Delivery Charge, and other applicable surcharges or penalties. The rates paid by Shipper receiving capacity release transportation service shall be adjusted as provided on Exhibit R in the executed Transportation Service Agreement For Capacity Release between PGT and Shipper. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 16A First Revised Volume No. 1-A Superseding First Revised Sheet No. 16A ________________________________________________________________________________ RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE (Continued) 3.11 Reservation Charge Credit - Malin Primary Delivery Point If PGT fails to deliver to Malin, Oregon ninety-five percent (95%) or more of the aggregate Confirmed Daily Nominations (as hereinafter defined) of all Shippers with a Malin primary delivery point receiving service under this rate schedule (hereinafter referred to as the "Non- Deficiency Amount") for more than twenty-five (25) days in any given Contract Year, then for each day during that Contract Year in excess of twenty-five (25) days that PGT so fails to deliver the Non-Deficiency Amount (a "Credit Day") Shipper, as its sole remedy, shall be entitled to a Reservation Charge Credit calculated in the manner hereinafter set forth. For the purpose of this Paragraph 3.10, Confirmed Daily Nomination shall mean for any day, the lesser of (1) Shipper's Maximum Daily Quantity or (2) the actual quantity of gas that the connecting pipeline upstream of PGT is capable of delivering for Shipper's account to PGT at Shipper's primary point of receipt(s) on PGT less Shipper's requirement to provide compressor fuel and line losses under the Statement of Effective Rates and Charges of PGT's FERC Gas Tariff, First Revised Volume No. 1-A or (3) the quantity of gas that Pacific Gas And Electric Company (PG&E) is capable of accepting at Malin for Shipper's account or (4) Shipper's nomination to PGT. The Reservation Charge Credit for each Credit Day for a particular Shipper shall be computed as follows: Reservation Charge A B - C Credit for Each ____ x _____ Credit Day = 30.4 B where A = Shipper's Monthly Reservation Charge B = Shipper's confirmed daily nomination for the Credit Day C = Actual quantity of gas delivered by PGT to PG&E at Malin for Shipper's account for the Credit Day Except as provided for in Paragraph 3.11 of this rate schedule, this Reservation Charge Credit is Shipper's sole remedy for nondelivery of gas by PGT. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 16B First Revised Volume No. 1-A Superseding First Revised Sheet No. 16B ________________________________________________________________________________ RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE (Continued) 3.12 Reservation Charge Credit - Other than Malin Primary Delivery Point If PGT fails to deliver to a primary delivery point on its system other than Malin, Oregon, ninety-five percent (95%) or more of the aggregate Confirmed Daily Nominations (as hereinafter defined) of all Shippers at such primary delivery point other than Malin receiving service under this rate schedule (hereinafter referred to as the "Non-Deficiency Amount") for more than twenty-five (25) days in any given Contract Year, then for each day during that Contract Year in excess of twenty-five (25) days that PGT so fails to deliver the Non-Deficiency Amount (a "Credit Day") Shipper, as its sole remedy, shall be entitled to a Reservation Charge Credit calculated in the manner hereinafter set forth. For the purpose of this Paragraph 3.11, Confirmed Daily Nomination shall mean for any day, the lesser of (1) Shipper's Maximum Daily Quantity or (2) the quantity of gas that the connecting downstream pipeline(s), local distribution company pipeline(s), or end-user(s) is/are capable of accepting for Shipper's account at Shipper's point(s) of primary delivery on PGT or (3) the quantity of gas that the connecting pipeline upstream of PGT is capable of delivering to PGT for Shipper's account to PGT at Shipper's primary point of receipt(s) on PGT less Shipper's requirement to provide compressor fuel and line losses under the Statement of Effective Rates and Charges of PGT's FERC Gas Tariff, First Revised Volume No. 1-A or (4) Shipper's nomination to PGT. The Reservation Charge Credit for each Credit Day for a particular Shipper shall be computed as follows: Reservation Charge A B - C Credit for Each ____ x _____ Credit Day = 30.4 B where A = Shipper's Monthly Reservation Charge B = Shipper's confirmed daily nomination for the Credit Day C = Actual quantity of gas delivered by PGT to a Shipper's primary delivery point(s) (other than Malin) for Shipper's account for the Credit Day Except as provided for in Paragraph 3.10 of this rate schedule, this Reservation Charge Credit is Shipper's sole remedy for nondelivery of gas by PGT. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Third Revised Sheet No. 17 First Revised Volume No. 1-A Superseding Second Revised Sheet No. 17 ________________________________________________________________________________ RATE SCHEDULE FTS-1 FIRM TRANSPORTATION SERVICE (Continued) 4. FUEL AND LINE LOSS Shipper shall furnish to PGT quantities of gas for compressor station fuel, line loss and other utility purposes, plus other unaccounted for gas used in the operation of PGT's combined pipeline system between the International Boundary near Kingsgate, British Columbia and the Oregon-California boundary for the transportation quantities of gas delivered by PGT to Shipper, based upon the effective fuel and line loss percentages in accordance with Paragraph 37 of the General Terms and Conditions. 5. TRANSPORTATION GENERAL TERMS AND CONDITIONS All of the Transportation General Terms and Conditions are applicable to this rate schedule, unless otherwise stated in the executed Firm Transportation Service Agreement between PGT and Shipper. Any future modifications, additions or deletions to said Transportation General Terms and Conditions, unless otherwise provided, are applicable to firm transportation service rendered under this rate schedule, and by this reference, are made a part hereof. ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Eighth Revised Sheet No. 51 First Revised Volume No. 1-A Superseding Seventh Revised Sheet No. 51 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS TABLE OF CONTENTS Paragraph No. Provision Sheet No. 1 Definitions 52 2 Gas Research Institute Charge Adjustment Provision 55 3 Quality of Gas 56 4 Measuring Equipment 58 5 Measurements 60 6 Inspection of Equipment and Records 61 7 Billing 61 8 Payment 62 9 Reserved 63 10 Force Majeure 63 11 Warranty of Eligibility for Transportation 64 12 Possession of Gas and Responsibility 64 13 Indemnification 65 14 Arbitration 65 15 Governmental Regulations 66 16 Miscellaneous Provision 66 17 Transportation Service Agreement 66 18 Operating Provisions 67 19 Priority of Service, Scheduling and Nominations 81 20 Curtailment 81C 21 Balancing 82 22 Annual Charge Adjustment (ACA) Provision 85 23 Shared Operating Personnel and Facilities 85 24 Complaint Procedures 86 25 Information Concerning Availability and Pricing of Transportation Service and Capacity Available for Transportation 87 26 Market Centers 88 27 Planned PGT Capacity Curtailments and Interruptions 88A 28 Capacity Release 89 29 Flexible Receipt and Delivery Points 119 30 Gas Supply Restructuring Transition Costs 123 31 Reserved 127 32 Equality of Transportation Service 129 33 Right of First Refusal Upon Termination of Firm Shipper's Service Agreement 130 34 Electronic Bulletin Board 132 35 Reserved 137 35A Crediting of Interruptible Transportation Revenues for Extensions 138A 36 Discount Policy 139 37 Adjustment Mechanism for Fuel, Line Loss and Other Unaccounted For Gas Percentages 140 38 Reserved 142 39 Sales of Excess Gas 143 (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: SEPTEMBER 13, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 52 First Revised Volume No. 1-A Superseding First Revised Sheet No. 52 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 1. DEFINITIONS 1.1 The word "day" shall mean a period of twenty-four (24) consecutive hours, beginning and ending at 7:00 o'clock a.m. Pacific Standard Time or such other time as Shipper and PGT may agree upon. 1.2 The word "month" shall mean a period extending from the beginning of the first day in a calendar month to the beginning of the first day in the next succeeding calendar month. 1.3 The term "Maximum Daily Quantity" (MDQ) shall mean the maximum daily quantity in MMBtu of gas which PGT agrees to deliver exclusive of an allowance for compressor station fuel, line loss and other unaccounted for gas and transport for the account of Shipper to Shipper's point(s) of delivery on each day during each year during the term of Shipper's Transportation Service Agreement with PGT. 1.4 The term "marketing affiliate" shall mean Pacific Gas and Electric Company and Hermiston Generating Company, L.P. 1.5 The word "gas" shall mean natural gas. 1.6 The term "cubic foot of gas" shall mean that quantity of gas which, at a temperature of sixty degrees (60/./) Fahrenheit and at a pressure of 14.73 pounds per square inch absolute, occupies one (1) cubic foot. 1.7 The term "Mcf" shall mean one thousand (1,000) cubic feet of gas and shall be measured as set forth in Paragraph 5 hereof. The term "MMcf" shall mean one million (1,000,000) cubic feet of gas. 1.8 The term "Btu" shall mean British Thermal Unit. The term "MMBtu" shall mean one million (1,000,000) British Thermal Units. 1.9 The term "gross heating value" shall mean the number of Btu's in a cubic foot of gas at a temperature of sixty degrees (60/./) Fahrenheit, saturated with water vapor, and at an absolute pressure equivalent to thirty (30) inches of mercury at thirty-two degrees (32/./) Fahrenheit. 1.10 The term "psig" shall mean pounds per square inch gauge. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: MARCH 01, 1996 Effective: APRIL 01,1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 53 First Revised Volume No. 1-A Superseding Original Sheet No. 53 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 1. DEFINITIONS (Continued) 1.11 Releasing Shipper: A firm transportation Shipper which intends to post its service to be released to a Replacement Shipper, has posted the service for release, or has released its service. 1.12 Replacement Shipper: A Shipper which has contracted to utilize a Releasing Shipper's service for a specified period of time. 1.13 Posting Period: The period of time during which a Releasing Shipper may post, or have posted by the pipeline, all or a part of its service for release to a Replacement Shipper. 1.14 Release Term: The period of time during which a Releasing Shipper intends to release, or has released all or a portion of its contracted quantity of service to a Replacement Shipper. 1.15 Bid Period: The period of time during which a Replacement Shipper may bid to contract for a parcel which has been posted for release by a Releasing Shipper. 1.16 Parcel: The term utilized to describe an amount of capacity, expressed in MMBtu/d, from a specific receipt point to a specific delivery point for a specific period of time which is released and bid on pursuant to the capacity release provisions contained in Paragraph 28 of these Transportation General Terms and Conditions. 1.17 Primary Release: The term used to describe the release of capacity by a Releasing Shipper receiving service under a Part 284 firm transportation rate schedule. 1.18 Secondary Release: The term used to describe the release of capacity by a Replacement Shipper receiving service under a Part 284 firm transportation rate schedule. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff Third Revised Sheet No. 54 First Revised Volume No. 1-A Superseding Second Revised Sheet No. 54 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 1. DEFINITIONS (Continued) 1.19 Bid Reconciliation Period: The period of time subsequent to the Bid Period during which bids are evaluated by PGT. 1.20 Match Period: The period of time subsequent to the Bid Reconciliation Period and before the notification deadline for awarding capacity for Prearranged Deal C during which the Prearranged Shipper may match any higher bids for the Parcel. 1.21 The term Mainline Facilities shall mean the 36-inch and 42-inch mains and appurtenant facilities extending from the interconnection with the pipeline facilities of Alberta Natural Gas Company and Foothills Pipe Lines (South B.C.) Ltd., near Kingsgate, British Columbia to the interconnection with the pipeline facilities of Pacific Gas and Electric Company near Malin, Oregon. 1.22 The term Extension Facilities shall mean the 12-inch mains and appurtenant facilities extending from PGT's mainline facilities at Milepost 304.25 and the 16-inch and 12-inch mains and appurtenant facilities extending from PGT's Mainline Facilities at Milepost 599.20 that were authorized in Docket No. CP93-618-000. The term "Extension Facility" shall mean one of the Extension Facilities. 1.23 The term "Subject Shipper" shall mean the Shippers identified in Appendix G of the Stipulation and Agreement in Docket No. RP94-149- 000, et al., and Shippers that have obtained service rights from such Shippers. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: NOVEMBER 01, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 55 First Revised Volume No. 1-A Superseding First Revised Sheet No. 55 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 2. GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION 2.1 Purpose: PGT has joined with other gas enterprises in the formation of, and participation in, the activities and financing of the Gas Research Institute (GRI), an Illinois Not For Profit corporation. GRI has been organized for the purpose of sponsoring Research, Development and Demonstration (RD&D) programs in the field of natural and manufactured gas for the purpose of assisting all segments of the gas industry in providing adequate, reliable, safe, economic and environmentally acceptable gas service for the benefit of gas consumers and the general public. For the purpose of funding GRI's approved expenditures, this Paragraph 2 establishes a GRI Adjustment Charge to be applicable to PGT's Rate Schedules ITS-1, AIS-1, PS-1 and FTS-1 in this FERC Gas Tariff First Revised Volume No. 1-A; provided, however, such charge shall not be applicable in the event gas is delivered to a downstream interstate pipeline that is a member of GRI. 2.2 Basis for the GRI Adjustment Charges: The rate schedule specified in Paragraph 2.1 hereof shall include an increment for a GRI Adjustment Charge for RD&D. Such GRI Adjustment Charge shall be that increment, adjusted to PGT's pressure base and heating value if required, which has been approved by Federal Energy Regulatory Commission Orders approving GRI's RD&D expenditures. The GRI Adjustment Charge shall be reflected in the current Statement of Effective Rates and Charges for Transportation of Natural Gas in this FERC Gas Tariff First Revised Volume No. 1-A. 2.3 Filing Procedure: The notice period and proposed effective date of filings pursuant to this paragraph shall be as permitted under Section 4 of the Natural Gas Act; provided, however, that any such filing shall not become effective unless it becomes effective without suspension or refund obligation. 2.4 Remittance to GRI: PGT shall remit to GRI, not later than fifteen (15) days after the receipt thereof, all monies received by virtue of the GRI Adjustment Charge, less any amounts properly payable to a Federal, State or Local authority relating to the monies received hereunder. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 55A First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 2. GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION (Continued) 2.5 A high load factor Shipper is a Shipper with a load factor greater than fifty (50) percent. A low load factor Shipper is a Shipper with a load factor equal to or less than fifty (50) percent. A Shipper's load factor for each service agreement shall be determined annually using the most recent twelve (12) months of actual throughput available (including throughput using capacity released pursuant to Paragraph 28 of the Transportation General Terms and Conditions). The Shipper's load factor shall remain in effect during the calendar year. In the event twelve (12) months of actual data does not exist, the Shipper's load factor shall be determined monthly based on the latest recorded throughput data. The appropriate GRI demand surcharge is applied monthly until such time as twelve (12) months of actual data is accumulated. At such time the Shipper's load factor shall remain in effect during the calendar year. 2.6 For the purpose of funding GRI's approved expenditures, and subject to the further terms and conditions set forth in the Stipulation and Agreement Concerning the Post-1993 GRI Funding Mechanism and the orders approving such Stipulation and Agreement found at Gas Research Institute, 62 FERC (P)61,316 (1993) this Paragraph 2 establishes a GRI Funding Unit which shall be collected for quantities of gas transported under PGT's rate schedules provided, however, such charge shall not be applicable to discounted transactions except where the discounted rate is less than the GRI Funding Unit. In this instance PGT shall remit that portion of the GRI Funding Unit actually collected. For purposes of discounted transactions, any GRI Funding Unit shall be considered to be the first component of rates discounted. The GRI Funding Unit may be discounted to zero and shall not be applied to the same quantity of gas more than once. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: JANUARY 10, 1994 Effective: JANUARY 01, 1994 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. TM94-2-86-000, dated DECEMBER 30, 1993 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 56 First Revised Volume No. 1-A Superseding Original Sheet No. 56 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 3. QUALITY OF GAS 3.1 Quality Standards: The gas which Shipper delivers hereunder to PGT for transport (and the gas which PGT transports hereunder for Shipper) shall be merchantable gas at all times complying with the following quality requirements: (a) Heating Value: The gas shall have a gross heating value of not less than nine hundred ninety-five (995) Btus per standard cubic foot on a dry basis, but with the consent of Shipper, PGT may deliver gas at a lower gross heating value. (b) Freedom from Objectionable Matter: The gas: (1) Shall be commercially free from sand, dust, gums, crude oil, impurities and other objectionable substances which may be injurious to pipelines or which may interfere with its transmission through pipelines or its commercial utilization. (2) Shall not have a hydrocarbon dew-point in excess of fifteen degrees (15/./) Fahrenheit at pressures up to eight hundred (800) psig. (3) Shall not contain more than one-quarter (1/4) grain of hydrogen sulfide per one hundred (100) standard cubic feet. (4) Shall not contain more than ten(10) grains of total sulphur per one hundred (100) standard cubic feet. (5) Shall not contain more than two percent (2%) by volume of carbon dioxide. (6) Shall not contain more than four (4) pounds of water vapor per one million (1,000,000) standard cubic feet. (7) Shall not exceed one hundred ten degrees (110/./) Fahrenheit in temperature at the point of measurement. (8) Shall be as free of oxygen as it can be kept through the exercise of all reasonable precautions, and shall not in any event contain more than four-tenths of one percent (0.4%) by volume of oxygen. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 57 First Revised Volume No. 1-A Superseding First Revised Sheet No. 57 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 3. QUALITY OF GAS (Continued) 3.2 Quality Tests: (a) The quality specifications of the gas received by PGT hereunder shall be determined by tests which PGT shall cause to be made at the International Boundary or such other locations on PGT's system if required accordance with this Paragraph 3.2. (b) The gross heating value of gas delivered hereunder shall be determined from read-outs of continuously operating measuring instruments. The method shall consist of one or more of the following: (1) calorimeter (2) gas chromatograph (3) any other method mutually agreed upon by the parties. Measurement of gross heating value with the calorimeters shall comply with the standards set forth in the American Society for Testing and Materials' ASTM D 1826. Analysis of gas with gas chromatograph shall comply with the standards set forth in ASTM D 1945. Calculation of the gross heating value from compositional analysis by gas chromatography shall comply with the standards set forth in ASTM D 3588. PGT or its agent shall calibrate and maintain the gross heating value measurement device at intervals as agreed upon by PGT and Shipper. Shipper shall have access to PGT's devices and shall be allowed to inspect the devices and all charts or other records of measurement at any reasonable time. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 58 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 3. QUALITY OF GAS (Continued) 3.2 Quality Tests (Continued) (c) Tests shall be made to determine the total sulphur, hydrogen sulfide, carbon dioxide and oxygen content of the gas, by approved standard methods in general use in the gas industry, and to determine the hydrocarbon dew-point and water vapor content of such gas by methods satisfactory to the parties. Tests shall be made frequently enough to ensure that the gas is conforming continuously to the quality requirements. Shipper shall have the right to require PGT to have remedied any deficiency in quality of the gas and, in the event such deficiency is not remedied, the right, in addition to all other remedies available to it by law, to refuse to accept such deficient gas until such deficiency is remedied. 4. MEASURING EQUIPMENT 4.1 Installation: Unless PGT and Shippers agree otherwise, all gas volume measuring equipment, devices and materials at the point(s) of receipt and/or delivery shall be furnished and installed by PGT at Shipper's expense including the tax-on-tax effect. All such equipment, devices and materials shall be owned, maintained and operated by PGT. Shipper may install and operate check measuring equipment provided it does not interfere with the use of PGT's equipment. 4.2 Testing Meter Equipment: The accuracy of either PGT's or Shippers measuring equipment shall be verified by test, using means and methods acceptable to the other party, at intervals mutually agreed upon, and at other times upon request. Notice of the time and nature of each test shall be given by the entity conducting the test to the other entity sufficiently in advance to permit convenient arrangement for the presence of the representative of the other entity. If, after notice, the other entity fails to have a representative present, the results of the test shall nevertheless be considered accurate until the next test. If any of the measuring equipment is found to be registering inaccurately in any percentage, it shall be adjusted at once to read as accurately as possible. All tests of such measuring equipment shall be made at the expense of the entity conducting the same, except that the other entity shall bear the expense of tests made at its request if the inaccuracy is found to be two percent (2%) or less. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al, dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 59 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 4. MEASURING EQUIPMENT (Continued) 4.3 Correction and Adjustment: If at any time any of the measuring equipment is registering inaccurately by an amount exceeding two percent (2%) at a reading corresponding to the average hourly rate of flow, the previous readings of such equipment shall be corrected to zero error for any period definitely known or agreed upon, or if not so known or agreed upon, one-half (1/2) of the elapsed time since the last test. If the measuring equipment is out-of-service, the volume of gas delivered during such period shall be determined: (a) By using the data recorded by any check measuring equipment accurately registering; or (b) If such check measuring equipment is not registering accurately but the percentage of error is ascertainable by a calibration test, by using the data recorded, corrected to zero error; or (c) If neither of the methods provided in (a) and (b) above can be used, by estimating the quantity delivered, by reference to deliveries under similar conditions during a period when the equipment was registering accurately. No correction shall be made in the recorded volumes of gas delivered hereunder for measuring equipment inaccuracies of two percent (2%) or less, and in no event shall inaccuracies less than 25 Mcf be considered for adjustment. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al, dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 60 First Revised Volume No. 1-A Superseding Original Sheet No. 60 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 5. MEASUREMENTS 5.1 Metering: The gas shall be metered by one or more orifice, turbine, or displacement-type meters, at the discretion of PGT. When orifice meters are used, they shall be installed and maintained, and volumes shall be measured, in accordance with the methods prescribed in ANSI/API 2530, also published as A.G.A No. 3. When turbine meters are used, they shall be installed and maintained, and volumes shall be measured, in accordance with methods prescribed in AGA Report No. 4 or any subsequent revision. When displacement meters are used, they shall be installed and maintained and quantities shall be measured in accordance with methods prescribed in A.G.A. No. 2, and the number of Mcf delivered hereunder shall be computed by including factors for pressure, temperature and deviation from Boyle's Law. To accurately determine the deviation from Boyle's Law, a quantitative analysis of the gas components shall be made at reasonable intervals with such apparatus as shall be agreed upon by both parties. 5.2 Specific Gravity: The specific gravity of the gas delivered hereunder shall be determined from the read-outs of continuously operating measuring instruments. The method shall consist of one of the following: (a) gravitometer (b) gas chromatography (c) other instruments acceptable to both parties Analysis of chromatograph shall comply with the standards set forth in ASTM D 1945. Calculation of the specific gravity from compositional analysis by gas chromatography shall comply with the standards set forth in ASTM D 3588. Measurement of the specific gravity with a gravitometer shall comply with the standards set forth in ASTM D 1070. 5.3 Flowing Temperature: Flowing gas temperature shall be continuously measured and used in flow calculations. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 61 First Revised Volume No. 1-A Superseding Original Sheet No. 61 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 6. INSPECTION OF EQUIPMENT AND RECORDS 6.1 Inspection of Equipment and Data: PGT and Shipper shall have the right to inspect equipment installed or furnished by the other, and the charts and other measurement or test data of the other, at all times during business hours; but the reading, calibration and adjustment of such equipment and changing of charts shall be done only by the entity installing or furnishing same. Unless PGT and Shipper otherwise agree, each shall preserve all original test data, charts and other similar records in such party's possession, for a period of at least six (6) years. 6.2 Information for Billing: When information necessary for billing by PGT is in the control of Shipper, Shipper shall furnish such information, estimated if actual is not available, to PGT on or before the third (3rd) working day of the month following the month transportation service was rendered. If shipper furnishes estimated information, the actual information shall be furnished to PGT on or before the sixth (6th) working day of the month following the month transportation service was rendered. 6.3 Verification of Computations: PGT and Shipper shall have the right to examine at reasonable times the books, records and charts of the other to the extent necessary to verify the accuracy of any statement, charge or computation made pursuant to these Transportation General Terms and Conditions and to the rate schedules to which they apply, within twelve (12) months of any such statement, charge or computation. 7. BILLING 7.1 Billing under all Rate Schedules: On or before the twentieth (20th) day of each month, PGT shall render a bill to each Shipper under all applicable Rate Schedules for the service(s) rendered during the preceding month. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 24, 1994 Effective: MARCH 27, 1994 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 62 First Revised Volume No. 1-A Superseding First Revised Sheet No. 62 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 8. PAYMENT 8.1 Payment under all Rate Schedules: On or before the last day of each month, each Shipper under all applicable Rate Schedules shall pay to or upon the order of PGT in lawful money of the United States at PGT's office in Portland, Oregon, the amount of the bill rendered by PGT during the month in accordance with Paragraph 7.1 of these Transportation General Terms and Conditions. 8.2 Interest on Unpaid Amounts: Should Shipper fail to pay the amount of any bill rendered by PGT when such amount is due, interest thereon shall accrue from the due date until paid at the rate of interest effective from time to time under 18 CFR Section 154.67. 8.3 Remedies for Failure to Pay: If such failure to pay continues for thirty (30) days after payment is due, PGT, in addition to any other remedy it may have, may suspend further delivery of gas until such amount is paid, unless Shipper in good faith disputes the amount owing and pays such amount as it concedes to be correct. Either party may submit to arbitration in accordance with Paragraph 14 of these Transportation General Terms and Conditions any dispute as to the amount due PGT hereunder. 8.4 Late Billing: If presentation of a bill by PGT is delayed after the date specified in Paragraph 7.1 hereof, then the time for payment shall be extended correspondingly unless Shipper is responsible for such delay. 8.5 Adjustment of Billing Error: In the event an error is discovered in any bill rendered by PGT, the amount of such error shall be adjusted, provided that claim therefor shall have been made within twelve (12) months from the date such bill was rendered. The adjustment shall be made within thirty (30) days of such timely claim. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: OCTOBER 18, 1995 Effective: NOVEMBER 18, 1995 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 63 First Revised Volume No. 1-A Superseding Original Sheet No. 63 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 9. NOTICE OF CHANGES IN OPERATING CONDITIONS PGT and Shipper shall each ensure that the other is notified from time to time as necessary of expected changes in the rates of delivery or receipt of gas, or in the pressures or other operating conditions, and the reason for such expected changes, so that they may be accommodated when they occur. 10. FORCE MAJEURE 10.1 If either party shall fail to perform any obligation imposed upon it by these Transportation General Terms and Conditions or by an executed Transportation Service Agreement, and such failure shall be caused, or materially contributed to, by force majeure which means any acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemies, sabotage, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, floods, storms, fires, washouts, extreme cold or freezing weather, arrests and restraints of rulers and people, civil disturbances, explosions, breakage of or accident to machinery or lines of pipe, hydrate obstructions of lines of pipe, inability to obtain pipe, materials or equipment, legislative, administrative or judicial action which has been resisted in good faith by all reasonable legal means, any acts, omissions or causes whether of the kind herein enumerated or otherwise not reasonably within the control of the party invoking this paragraph and which by the exercise of due diligence such party could not have prevented, the necessity for making repairs to, replacing, or reconditioning machinery, equipment, or pipelines not resulting from the fault or negligence of the party invoking this paragraph, such failure shall be deemed not to be a breach of the obligation of such party, but such party shall use reasonable diligence to put itself in a position to carry out its obligations. Nothing contained herein shall be construed to require either party to settle a strike or lockout by acceding against its judgment to the demands of the opposing parties. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 64 First Revised Volume No. 1-A Superseding Original Sheet No. 64 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 10. FORCE MAJEURE (Continued) 10.2 No such cause as described in Paragraph 10.1 affecting the performance of either party shall continue to relieve such party from its obligation after the expiration of a reasonable period of time within which by the use of due diligence such party could have remedied the situation preventing its performance, nor shall any such cause relieve either party from any obligation unless such party shall give notice thereof in writing to the other party with reasonable promptness; and like notice shall be given upon termination of such cause. 10.3 No cause whatsoever, including without limitation the failure of PGT to perform including the causes specified in Paragraph 10.1, shall relieve Shipper from its obligations to make payments due, including the payments of reservation charges for the duration of such cause except as provided for in Paragraphs 3.10 and 3.11 of Rate Schedule FTS-1. 11. WARRANTY OF ELIGIBILITY FOR TRANSPORTATION Any Shipper transporting gas on the PGT system under this FERC Gas Tariff First Revised Volume No. 1-A warrants for itself, its successors and assigns, that it will have at the time of delivery of the gas to PGT hereunder good title to such gas and that all gas delivered to PGT for transportation hereunder is eligible for the requested transportation in interstate commerce under applicable rules, regulations or orders of the FERC, or other agency having jurisdiction. Shipper will indemnify PGT and save it harmless from all suits, actions, damages, costs, losses, expenses (including reasonable attorney fees) and costs connected with regulatory proceedings, arising from breach of this warranty. 12. POSSESSION OF GAS AND RESPONSIBILITY PGT shall be deemed to be in control and possession of, and responsible for, all gas delivered from the time that such gas is received by it at the point of receipt to the time that it is delivered at the point of delivery. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 65 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 13. INDEMNIFICATION Shipper agrees to indemnify and hold harmless PGT, its officers, agents, employees and contractors against any liability, loss or damage whatsoever occurring in connection with or relating in any way to the executed Transportation Service Agreement, including costs and attorneys' fees, whether or not such liability, loss or damage results from any demand, claim, action, cause of action, or suit brought by Shipper or by any person, association or entity, public or private, that is not a party to the executed Transportation Service Agreement, where such liability, loss or damage is suffered by PGT, its officers, agents, employees or contractors as a direct or indirect result of any breach of the executed Transportation Service Agreement or sole or concurrent negligence or gross negligence or other tortious act(s) or omission(s) by Shipper, its officers, agents, employees or contractors. 14. ARBITRATION Any arbitration provided for or agreed to by Shipper and PGT shall be conducted in accordance with the following procedures and principles: Upon the written demand of either PGT or Shipper and within ten (10) days from the date of such demand, each entity shall appoint an arbitrator and the two arbitrators so appointed shall promptly thereafter appoint a third. If either PGT or Shipper shall fail to appoint an arbitrator within ten (10) days from the date of such demand, then the arbitrator shall be appointed by a Superior Court of the State of California in accordance with the California Code of Civil Procedure. If the two arbitrators shall fail within ten (10) days from their appointment to agree upon and appoint the third arbitrator, then upon the application of either PGT or Shipper such third arbitrator shall be appointed by a Superior Court of the State of California in accordance with the California Code of Civil Procedure. The arbitrators shall proceed immediately to hear and determine the matter in controversy. The award of the arbitrators, or a majority of them, shall be made within forty-five (45) days after the appointment of the third arbitrator, subject to any reasonable delay due to unforeseen circumstances. The award of the arbitrators shall be drawn up in writing and signed by the arbitrators, or a majority of them, and shall be final and binding on both PGT and Shipper, and PGT and Shipper shall abide by the award and perform the terms and conditions thereof. Unless otherwise determined by the arbitrators, the fees and expenses of the arbitrator named for each party shall be paid by that party and the fees and expenses of the third arbitrator shall be paid in equal proportion by both PGT and Shipper. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al, dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 66 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 15. GOVERNMENTAL REGULATIONS These Transportation General Terms and Conditions, the rate schedules to which they apply, and any executed Transportation Service Agreement are subject to valid laws, orders, rules and regulations of duly constituted authorities having jurisdiction. 16. MISCELLANEOUS PROVISION 16.1 Waiver of Default: No waiver by either PGT or Shipper of any default by the other in the performance of any provisions of an executed Transportation Service Agreement shall operate as a waiver of any continuing or future default, whether of a like or different character. 16.2 Assignability: An executed Transportation Service Agreement shall bind and inure to the respective successors and assignees of PGT and Shipper thereto, but no assignment shall release either party thereto from such party's obligations without the written consent of the other party, which consent shall not be unreasonably withheld; provided, however, nothing contained herein shall give Shipper the right to reassign or broker its right to ship the quantities of gas specified in the Transportation Service Agreement on PGT's system to others. Further, nothing contained herein shall prevent either party from pledging, mortgaging or assigning its rights as security for its indebtedness and either party may assign to the pledgee or mortgagee (or to a trustee for the holder of such indebtedness) any money due or to become due under any service agreement. 16.3 Effect of Headings: The headings used throughout these Transportation General Terms and Conditions, the rate schedules to which they apply, and the executed Transportation Service Agreements are inserted for reference purposes only and are not to be considered or taken into account in construing the terms and provisions of any paragraph nor to be deemed in any way to qualify, modify or explain the effects of any such terms or provisions. 17. TRANSPORTATION SERVICE AGREEMENT 17.1 Form: Shipper shall enter into a contract with PGT utilizing PGT's appropriate standard form of Transportation Service Agreement. 17.2 Term: The term of the Transportation Service Agreement shall be agreed upon between Shipper and PGT at the time of the execution thereof. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46,000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 67 First Revised Volume No. 1-A Superseding First Revised Sheet No. 67 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS Initial Service: For purposes of scheduling commencement of initial transportation service five (5) business days prior to the day on which Shipper desires service to commence, or such lesser period of time as mutually agreed upon by PGT and Shipper, Shipper will provide PGT a completed Customer Nomination Form provided to: Pacific Gas Transmission Company Gas Transportation and Services 2100 Southwest River Parkway Portland, OR 97201 Phone - 503-833-4300 Fax -503-833-4396 Shipper shall not be entitled to receive transportation service under this FERC Gas Tariff First Revised Volume No. 1-A if Shipper is not current in its payments to PGT for any charge, rate or fee authorized by the Commission for transportation service; provided, however, if the amount not current pertains to a bona fide dispute, including but not limited to force majeure claims relating to this FERC Gas Tariff, Shipper shall be entitled to receive or continue to receive transportation service if Shipper posts a bond satisfactory to PGT to cover the payment due PGT. 18.1 Firm Service The provisions of this Paragraph 18.1 shall be applicable to firm transportation service under Rate Schedule FTS-1 contained in this First Revised Volume No. 1-A. Firm transportation service under this First Revised Volume No. 1-A shall be provided when, and to the extent that, PGT determines that firm capacity is available on PGT's existing facilities. PGT shall not be required to provide firm transportation service in the event firm capacity is unavailable or to construct new facilities to provide firm service. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: OCTOBER 18, 1995 Effective: NOVEMBER 18, 1995 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 68 First Revised Volume No. 1-A Superseding Original Sheet No. 68 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.1 Firm Service (Continued) For capacity that becomes available other than the circumstances identified in Paragraphs 28 and 33, requests for firm capacity shall be accommodated in the following manner and subject to the following conditions and limitations: (a) In order to be eligible for firm capacity, a party requesting service (requestor) must be deemed credit-worthy per Paragraph 18.3 and submit a valid request in accordance with the provisions herein. (b) PGT will post on Pacific Trail, PGT's Electronic Bulletin Board (EBB), available capacity. A requestor that submits a valid request may submit a bid via the EBB for the available capacity subsequent to PGT's posting of such capacity on the EBB. The Bid Period will be 5 business days, during which time other requestors with valid requests may submit a bid. All bids not withdrawn prior to the close of the Bidding Period shall be binding. At the end of the Bidding Period, PGT will evaluate the bids and determine the bid(s) having the greatest economic value as determined in Paragraph 18.1(c) below. (c) After the close of the Bidding Period, PGT may tender a Service Agreement for execution to the requestor(s) submitting the bid(s) having the greatest economic value for the capacity available, subject to the provisions of Paragraph 18.1(e). The criteria for determining which requestor(s) has submitted the bid(s) with the greatest economic value shall be the Net Present Value (NPV) of the reservation charge as calculated at Paragraph 28 that requestor(s) would pay at the rates requestor(s) has bid, which shall not be less than the Minimum Rate nor greater than the Maximum Rate, as stated on the currently effective Statement of Rates and Charges governing such service, over the term of service specified in the request. If the economic values of separate bids are equal, then service shall be offered to such requestors on a pro-rata basis. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 69 First Revised Volume No. 1-A Superseding Original Sheet No. 69 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.1 Firm Service (Continued) (d) If PGT accepts the winning bid(s) and tenders a Service Agreement, requestor(s) shall complete and return the Service Agreement within thirty (30) days. (e) Except as provided in Paragraph 28, PGT shall not be obligated to tender or execute a Service Agreement for service at any rate less than the Maximum Rate set forth in the Statement of Effective Rates and Charges applicable to the service requested. (f) A Shipper receiving service under FTS-1 shall not lose its priority for purposes of Paragraph 19 by the renewal or extension of term of that service; provided, however, any renewal or extension must be pursuant to a rollover or evergreen provision of the Service Agreement. Shipper's preexisting priority shall not apply, however, to any increase in transportation quantity or new primary point of delivery. 18.2 Interruptible Service The provisions of this Paragraph 18.2 shall be applicable to interruptible transportation service under Rate Schedule ITS-1 contained in this First Revised Volume No. 1-A. (a) Interruptible transportation service under this First Revised Volume No. 1-A shall be provided when, and to the extent that, capacity is available in PGT's existing facilities, which capacity is not subject to a prior claim under a pre-existing agreement pursuant to Rate Schedule FTS-1 or under another class of firm service. (b) In the event where natural gas tendered by Shipper to PGT at the receipt point(s) for transportation, or delivered by PGT to Shipper (or for Shipper's account) at the delivery point(s), is commingled with other natural gas at the time of measurement, the determination of deliveries applicable to Shipper shall be made in accordance with operating arrangements satisfactory to Shipper, PGT and any third party transporting to or from PGT's system. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 70 First Revised Volume No. 1-A Superseding Original Sheet No. 70 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.2 Interruptible Service (Continued) (c) PGT shall process the requests of potential Shippers requesting similar interruptible transportation service under this FERC Gas Tariff First Revised Volume No. 1-A on a first-come, first-served basis, to the extent practicable, taking into account the nature and character of the service requested. Available interruptible capacity shall be allocated by PGT on a first-come, first-served basis as provided in Paragraph 19 and determined by the date and time PGT receives a completed request for service under this FERC Gas Tariff which conforms to Paragraph 18 of these Transportation General Terms and Conditions. (d) A Shipper receiving service under ITS-1 shall not lose its priority for purposes of Paragraph 19 by the renewal or extension of term of that service; provided, however, any renewal or extension must be pursuant to a rollover or evergreen provision of the Service Agreement. Shipper's pre-existing priority shall not apply, however, to any increase in transportation quantity or new primary points of delivery. (e) If Shipper fails to nominate and tender gas within the later of: (a) fifteen (15) days after initial notification by PGT of the availability of service, (b) receipt of any necessary regulatory approvals, or (c) the installation of any necessary facilities, Shipper's priority date shall be deemed null and void, and the day Shipper first tenders gas to PGT at any receipt point shall be Shipper's new assigned priority date for service. Shipper's priority date designation pursuant to Section 2.3 of the Transportation Service Agreement shall not be deemed null and void if Shipper's failure to nominate and tender gas is caused by an event of force majeure as defined in PGT's Transportation General Terms and Conditions. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 70A First Revised Volume No. 1-A Superseding Original Sheet No. 70A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.3 Credit-worthiness (A) Credit-worthiness for Firm Transportation Service (1) PGT shall not be required to perform or to continue transportation service under this FERC Gas Tariff First Revised Volume 1-A on behalf of any Shipper who is or has become insolvent or who, after PGT's request, fails within a reasonable period to establish or confirm credit-worthiness. Shippers shall provide, initially and on a continuing basis, financial statements, evidence of debt and/or credit ratings, and other such information as is reasonably requested by PGT to establish or confirm Shipper's qualification for service. Credit limits will be established based on the level of requested service and Shipper credit-worthiness as established by the following: (a) Credit-worthiness must be evidenced by at least a long term bond (or other senior debt) rating of BBB or an equivalent rating. Such rating may be obtained in one of three ways: (i) The rating will be determined by Standard and Poors or another recognized U.S. or Canadian debt rating service; (ii) If Shipper's debt is not rated by a recognized debt rating service, an equivalent rating as determined by PGT, based on the financial rating methodology, criteria and ratios for the industry of the Shipper as published by the above rating agencies from time to time. In general, such equivalent rating will be based on the audited financial statements for the Shipper's two most recent fiscal years, all interim reports, and any other relevant information; (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: APRIL 20, 1994 Effective: MAY 21, 1994 Pacific Gas Transmission Company FERC Gas Tariff Third Revised Sheet No. 71 First Revised Volume No. 1-A Superseding Second Revised Sheet No. 71 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.3 (A) Credit-worthiness for Firm Transportation Service (Continued) (iii) Shipper may, at its own expense, obtain a private rating from a recognized debt rating service, or request that an independent accountant or financial advisor, mutually acceptable to PGT and the Shipper, prepare an equivalent evaluation based on the financial rating methodology, criteria, and ratios for the industry of the Shipper as published by the above rating agencies from time to time; or (b) Approval by PGT's lenders; or (c) If Shipper is requesting credit to bid on a parcel that is for one year (365 days) or less of service through PGT's Capacity Release Program contained in Paragraph 28, and this option is selected by the Releasing Shipper, Shipper may demonstrate credit-worthiness by providing two years of audited financial statements for itself, or for its parent company if it is a subsidiary which is consolidated with its parent company and does not issue stand-alone financial statements, demonstrating adequate financial strength to justify the amount of credit to be extended. PGT shall apply consistent evaluation practices to determine credit-worthiness. (2) If Shipper does not establish or maintain credit-worthiness as described above, Shipper has the option of receiving transportation service under this FERC Gas Tariff by providing to PGT one of the following alternatives: (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 72 First Revised Volume No. 1-A Superseding First Revised Sheet No. 72 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.3 (A) Credit-worthiness for Firm Transportation Service (Continued) (a) A guarantee of Shipper's financial performance in a form satisfactory to PGT and for the term of the Gas Transportation Agreement from a corporate affiliate of the Shipper or a third party either of which meets the credit-worthiness standard discussed above. (b) Other security acceptable to PGT's lenders. 18.3 (B) Credit-worthiness for Interruptible Transportation Service (1) PGT shall not be required to perform or to continue interruptible transportation service under this FERC Gas Tariff First Revised Volume No. 1-A on behalf of any Shipper who is or has become insolvent or who, at PGT's request, fails within a reasonable period to demonstrate credit-worthiness. Shipper's credit-worthiness shall be determined by providing proof of least two of the items listed below: (a) A long-term bond or commercial paper rating from Standard and Poors or Moody's equivalent to a "Ba" or better, or a commercial paper rating from Standard and Poors or Moody's equivalent to Prime-3 or better. (b) Audited financial statements for itself, or for its parent company if it is a subsidiary which is consolidated with its parent company and does not issue stand-alone financial statements, for the two preceding years showing good financial strength. (c) An estimated financial strength rating by Dun and Bradstreet sufficient to cover the credit to be extended and a corresponding Dun and Bradstreet composite credit appraisal of "fair" or better. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective:SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 73 First Revised Volume No. 1-A Superseding Original Sheet No. 73 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.3 (B) Credit-worthiness for Interruptible Transportation Service (Continued) (d) A demonstration by the Shipper that the Company has sufficient financial capacity or backing to warrant an extension of credit. This demonstration could include proof of banking relationships sufficient to cover the service agreement, or a detailed listing of credit references within the industry, exhibiting a good credit history. (2) If Shipper does not demonstrate credit-worthiness, Shipper has the option of receiving interruptible transportation service under this FERC Gas Tariff First Revised Volume No. 1-A if Shipper provides PGT a letter of credit in an amount equal to the cost of performing the maximum level of service requested for a three (3) month period of time. The letter of credit must be from a credit worthy financial institution and be in place before the Transportation Service Agreement can be signed. The Shipper also has the option of receiving transportation service if Shipper prepays for transportation services on a month-to-month basis pursuant to the following terms: (a) For a calendar month in which transportation service is desired (delivery month), Shipper must notify PGT no later than eight (8) business days prior to the commencement of delivery month (estimation date) of its estimation of the maximum, cumulative gas deliveries (monthly estimation) desired for the delivery month. (For Shipper's initial monthly estimation, the delivery month, or remaining portion thereof, shall commence eight (8) days after the estimation date.) Notice of monthly estimation may be telephonic or written; telephonic notices must be confirmed in writing and received by PGT within five (5) business days. PGT will advise Shipper within forty-eight (48) hours of the estimation date of the exact dollar amount of the prepayment. Shipper shall not deliver or receive gas in excess of the monthly estimation during delivery month. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 74 First Revised Volume No. 1-A Superseding Original Sheet No. 74 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.3 (B) Credit-Worthiness for Interruptible Transportation Service (Continued) (b) No later than three (3) business days (settlement date) prior to commencement of delivery month, Shipper shall pay to PGT and PGT shall have received from Shipper lawful money of the United States in an amount equal to the prepayment amount provided to Shipper by PGT described above. (c) On or before the twentieth (20th) day following delivery month, PGT shall provide a statement to Shipper detailing the transportation service provided during the delivery month. The statement will reconcile the amount prepaid in accordance with the monthly estimation, with the actual cost of transportation service provided, and provide a credit to Shipper, if applicable. Any such credit will be deducted from the prepayment for the following month. Should the Shipper elect not to receive transportation services for the following month, Shipper shall so notify PGT in writing; PGT will issue a check to the Shipper within seven (7) business days following receipt by PGT of such notice. 18.3 (C) Credit-worthiness for Firm and Interruptible Transportation Service For purposes of this FERC Gas Tariff First Revised Volume No. 1-A the insolvency of a Shipper shall be evidenced by the filing by such Shipper or any parent entity thereof (hereinafter collectively referred in this paragraph 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 as 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 Act or any other applicable federal or state law, or appointing a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Shipper (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 75 First Revised Volume No. 1-A Superseding Original Sheet No. 75 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.3 (C) Credit-worthiness for Firm and Interruptible Transportation Service (Continued) or composition of or in respect of the Shipper under the Federal Bankruptcy Act or any 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 liquidation of its affairs, with said order or decree continuing unstayed and in effect for a period of sixty (60) consecutive days. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 76 First Revised Volume No. 1-A Superseding Original Sheet No. 76 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.4 Upon request of PGT, Shipper shall from time to time submit estimates of daily, monthly and annual quantities of gas to be transported, including peak day requirements. 18.5 PGT shall not be obligated to install additional facilities, other than those specified in Paragraph 4.1 herein, that are required to provide service under this FERC Gas Tariff First Revised Volume No. 1-A; provided, however, PGT may install or Shipper may pay all of the expenses incurred for installing additional facilities on a nondiscriminatory basis and under terms that are mutually agreeable. In the event PGT incurs the cost of installing additional facilities on behalf of a Shipper, Shipper shall pay, in addition to the rate(s) stated in the applicable rate schedule, the prorated(based on Transportation Contract Demand) cost of service attributable to any such additional facilities until such time as a different allocation procedure is specified by Commission order. 18.6 No transportation service will be conducted for the account of Shipper by PGT until PGT has received the completed service request form, unedited and complete as to form, and Shipper has been advised by PGT that the transportation service may commence. 18.7 Requests for interruptible and firm transportation service hereunder shall be made by providing the information contained in PGT's Transportation Request Form to PGT. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 77 First Revised Volume No. 1-A Superseding Original Sheet No. 77 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.8 Transportation Request Form Gentlemen: ________________________________ (Shipper) hereby requests gas transportation service from Pacific Gas Transmission Company (PGT) in accordance with Paragraph 18.8 of the Transportation General Terms and Conditions of PGT's tariff and concurrently provides the following information relative to this request: 1. Shipper's Name ___________________________________________ Business Address __________________________________________ State or Province of Incorporation ________________________ 2. Requesting Party ____________________ Title _______________ Contact Name ________________________ Phone _______________ 3. Shipper's Status: LDC ____ Intrastate ____ End User ____ (Check one) Producer ____ Marketer/Broker __________ Gatherer ____ Interstate ____ Other __________________________________ 4. Type of Service Requested: (Check all applicable) a. Part 284 Interruptible ____ b. Part 284 Firm ____* c. New Service ____ d. Amendment to PGT Contract #_______ e. Add/Change Receipt/Delivery Point ____ f. Authority to Bid for Released Capacity ____ * PGT will accept requests for firm transportation service. At such time that firm capacity may become available, PGT will evaluate such requests. Currently, no excess firm capacity is available on the PGT system. 5. Type of Authority: Blanket Section 7 (Part 284, Subpart G)____ Section 311(a) (Part 284, Subpart B)____ (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 78 First Revised Volume No. 1-A Superseding First Revised Sheet No. 78 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.8 Transportation Request Form (Continued) 6. If Shipper requests service under Section 311(a), provide the following information concerning the party on whose behalf the transportation will be provided (the "On Behalf of" party): (a) The exact legal name of the "On Behalf Of" party: ________________________________________________________________ (b) The "On Behalf Of" party's address (if other than Shipper): ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (c) Is the "On Behalf Of" party: A Local Distribution Company ______ An Intrastate Pipeline ______ 7. If Shipper requests service under Section 311(a), Shipper must provide a certification that the service qualifies under 18 C.F.R. (S) 284.102. To enable PGT to verify that the requested transportation service will qualify under 18 C.F.R. (S) 284.102, the certification must provide facts showing that: (a) the "On Behalf Of" party will have physical custody of and transport the natural gas at some point; or (b) the "On Behalf Of" party will hold title to the natural gas at some point, which may occur prior to , during, or after the time that the gas is transported by PGT, for a purpose related to the "On Behalf Of" party's status and function as an intrastate pipeline or its status and function as a local distribution company; or (c) the gas will be delivered to a customer that is either located in the "On Behalf Of" party's service area, if the "On Behalf Of" party is a local distribution company, or is physically able to receive direct deliveries of gas from the "On Behalf Of" party, if the "On Behalf Of" party is an interstate pipeline, and that "On Behalf Of" party has certified that it is on its behalf that PGT will be providing the requested transportation service. (The "On Behalf Of" party's certification must be submitted with the Transportation Request Form.) (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 79 First Revised Volume No. 1-A Superseding Substitute Original Sheet No. 79 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.8 Transportation Request Form (Continued) 8. The intended use of the gas is: _____ utility or pipeline system supply _____ end use by industry or commerce _____ other (specify) 9. Requested Commencement Date _______________ (not to exceed 3 months from request date) Termination Date __________________ Evergreen clause desired (Complete for Part 284 Interruptible or Firm Service only): Yes _____ No _____ 10. Transportation Quantities: a) Total Maximum Daily Quantity (MDQ): __________ MMBtu/day b) Total quantity for contract period: __________ MMBtu 11. Notices to: _______________________________________________________ Mailing Address _______________________________________________________ City State Zip _______________________________________________________ Street Address (if P.O. Box was used above) _______________________________________________________ City State Zip _______________________________________________________ Attention Title _______________________________________________________ Telephone Number Fax Number (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 80 First Revised Volume No. 1-A Superseding Substitute Revised Sheet No. 80 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 18. OPERATING PROVISIONS (Continued) 18.8 Tranportation Request Form (Continued) Invoices to: _______________________________________________________ Mailing Address _______________________________________________________ City State Zip _______________________________________________________ Street Address (if P.O. Box was used above) _______________________________________________________ City State Zip _______________________________________________________ Attention Title _______________________________________________________ Telephone Number Fax Number (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 81 First Revised Volume No. 1-A Superseding First Revised Sheet No. 81 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS 19.1 Priority of Firm Service PGT shall provide service first for firm transportation Shippers for service at Shipper's primary receipt and delivery points in accordance with the applicable executed service agreements and rate schedules. Next, PGT will provide firm transportation service for service at Shipper's secondary receipt and delivery points or primary receipt and secondary delivery points in accordance with the applicable executed service agreements and rate schedules. If full service cannot be provided, PGT shall provide service on a pro rata basis according to the respective total Maximum Daily Demand or Maximum Daily Quantity, as appropriate, specified in each executed service agreement, first for service at Shipper's primary receipt and delivery points and second for service at Shipper's secondary receipt and delivery points. These provisions also apply for capacity released under PGT's capacity release program, and are subject to the terms and conditions as specified in an executed firm service agreement between PGT and Shipper. All service under the capacity release program shall be considered firm for purposes of priority of service. 19.2 Priority of Interruptible Service Interruptible transportation service under this FERC Gas Tariff First Revised Volume No. 1-A shall be provided when, and to the extent that, capacity is available in PTG's existing facilities, which capacity is not subject to a prior claim under a pre-existing contract, service agreement, certificate or under Priority 1 - Firm Service. PGT will provide interruptible transportation service, as set forth in Paragraph 19 of these Transportation General Terms and Conditions, on a first-come, first-served basis, as determined by the date and time PGT receives a completed request for service conforming to Paragraph 18.8, as approved by the Commission in Docket No. CP87-159-000. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 81.01 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued) 19.2 Priority of Interruptible Service Interruptible transportation service under this FERC Gas Tariff First Revised Volume No. 1-A shall be provided when, and to the extent that, capacity is available in PGT's existing facilities, which capacity is not subject to a prior claim under a pre-existing contract, service agreement, certificate or under Priority 1 - Firm Service. PGT will provide interruptible transportation service, as set forth in Paragraph 19 of these Transportation General Terms and Conditions, first to shippers paying the maximum rate in accordance with PGT's IT Queue, which is determined by the date and time PGT receives a completed request for service conforming to Paragraph 18.8, as approved by the Commission in Docket No. CP87-159-000. PGT will next allocate capacity to shippers paying a discounted rate to the shipper(s) paying the highest rate. For the purposes of this Section 19.2, the term "highest rate" shall be determined by multiplying the distance in pipeline miles from the receipt point to the delivery point by the sum of the Base Tariff Rate, GRI Surcharge, GSR Surcharge, and ACA Surcharge. In the event of a tie, shippers shall receive a pro-rata allocation based on the quantity that otherwise would be scheduled if not for the capacity limitation. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 81A First Revised Volume No. 1-A Superseding Original Sheet No. 81A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued) 19.3 Priority of Authorized Overrun Service Authorized overrun service shall have a priority lower than firm or interruptible as defined above. Priority within the overrun class shall be determined using a first-come, first-serve procedure. 19.4 Nominations Quantities nominated for transportation shall be for previously approved and valid receipt and delivery points and shall be provided by Shipper via the Electronic Bulletin Board (EBB), to PGT's Gas Control no later than 10:00 a.m. Pacific Time for the following day. Nominations for an entire month may be made at any time up to 10:00 a.m. Pacific Time on the last day of the month. PGT shall have the discretion to accept nominations at such other later times as operating conditions may permit and without detrimental impact to other Shippers and upon confirmation that corresponding upstream and downstream arrangements in a manner satisfactory to PGT have been made. The receipt of the nomination by PGT is notice that all necessary regulatory approvals have been received and that valid upstream and downstream transportation and other contractual arrangements are in place. Shipper shall provide as a component of its nomination such other information as may be required by PGT to enable it to identify, confirm and schedule the nomination. Shipper shall also prioritize nominated receipts and deliveries when there is more than one supplier and more than one shipper customer respectively. Shipper designated priorities will be used to allocate gas when the upstream and downstream nominations vary from PGT's Shipper nominations. PGT shall be allowed to rely conclusively on the information submitted as part of the nomination in confirming the nomination for scheduling and allocation. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 81B First Revised Volume No. 1-A Superseding First Revised Sheet No. 81B ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 19. PRIORITY OF SERVICE, SCHEDULING AND NOMINATIONS (Continued) 19.4 Nominations (Continued) Requests to amend previously scheduled nominations may be accepted during the gas day, subject to operational conditions and, further that corresponding upstream and downstream adjustments in a manner satisfactory to PGT can be confirmed. A request to increase a nomination for firm transportation up to the MDQ specified in the Service Agreement will be accommodated to the extent operating conditions permit; provided, however an increased nomination will not be scheduled to the extent it would affect another Shipper's flowing quantities during the Gas Day that the increased nomination is received. A request to increase a nomination for interruptible transportation shall be permitted only to the extent that capacity is available and that no displacement of other interruptible transportation occurs. Such changes will become effective only when system operating conditions, as determined by PGT, permit changes to occur. Quantities nominated are for a daily rate, and will be received and delivered at a uniform hourly rate of confirmed quantity divided by 24, unless as determined by PGT, variance from the hourly rate will not be detrimental to the operation of the pipeline or adversely affect other PGT Shippers. Nominations, as amended by Shipper and received by PGT, shall remain in effect during the month for which the nomination is applicable, whether or not transportation occurs, until a new or amended nomination is provided by Shipper and received by PGT. PGT reserves the right to reject any nominated quantity of less than 24 MMBTU/day. PGT's primary method of nomination transmission shall be the EBB. If and only if, the EBB is inoperable, shall PGT accept nominations via alternative means such as fax transmittal. PGT requires that a Shipper designate, in writing, those individuals who will be authorized to place nominations for transportation on the system. 19.5 Priority of Parking and Authorized Imbalance Service Parking and Authorized Imbalance Service shall have the lowest priority on PGT's system. All other transportation service, including rectification of imbalances, have superior priority to these services. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 12, 1994 Effective: SEPTEMBER 14, 1994 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-145-000, dated AUGUST 03, 1994 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 81C First Revised Volume No. 1-A Superseding First Revised Sheet No. 81C ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 20. CURTAILMENT PGT shall have the right to curtail, interrupt, or discontinue Transportation Service on any portion of its system at any time for reasons of Force Majeure or when capacity, supply, or operating conditions so require or it is necessary or desirable to make modifications, repairs, or operating changes to its system. PGT shall provide notice of such occurrences as is reasonable under the circumstances. Capacity may become constrained at individual receipt points, delivery points or on segments of the pipeline. PGT shall exercise this curtailment provision only at the point(s) or segment(s) of the pipeline affected by the constraint. When capacity is constrained or otherwise insufficient to serve all the transportation requirements which are scheduled to receive service, transportation service will be curtailed in reverse order of the scheduling provided in Paragraph 19. Curtailment of firm service if necessary, will be performed pro rata based on the MDQ across the contracts scheduled to use capacity at the applicable delivery point(s) or mainline segment(s) of pipeline, applied first to secondary delivery points. Curtailment of firm service, if necessary, at receipt points will be performed pro rata based on the quantities scheduled at the affected receipt point(s), applied first to secondary receipt points. If, on any day, PGT determines the capacity of its mainline system, or any portion thereof, including the points at which gas is tendered for transportation, is insufficient to serve transportation requirements which are otherwise scheduled to receive service on such day, or to accept the quantities of gas tendered, capacity which requires allocation shall be allocated in a manner which results in curtailment of capacity, to zero if necessary, first to the last quantities scheduled, and then sequentially in reverse order to the scheduling provided for in Paragraph 19, except that mid-gas day nomination increases by interruptible Shippers shall not bump those interruptible Shippers' volumes already confirmed for that gas day. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 82 First Revised Volume No. 1-A Superseding Original Sheet No. 82 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 21. BALANCING Balancing of thermally equivalent quantities of gas received and delivered by PGT shall be achieved as nearly as feasible on a daily basis, with any cumulative imbalance accounted for on a monthly basis. Correction of imbalances shall be the responsibility of the Shipper whether or not notified by PGT at the time of incurrence of the imbalance. Correction of imbalances shall be scheduled with PGT using the nomination process as soon as an imbalance is known to exist based on the best available current data. Nominations to correct imbalances shall have the lowest priority for scheduling purposes and shall be subject to the availability of capacity and other operational constraints for imbalance correction. If on any day capacity is insufficient to schedule all imbalance nominations, all such nominations shall be prorated accordingly. To maintain the operational integrity of its system, PGT shall have the right to balance any Shipper's account as conditions may warrant. Imbalances shall exist as defined below and be subject to the applicable charges and penalties if not corrected. a) Actual delivered quantity exceeds MDQ An imbalance shall exist if the actual delivered quantity on any day exceeds the MDQ and the delivered quantity in excess of the MDQ has not been authorized by PGT (Unauthorized Overrun). Penalty: A Shipper shall be assessed $5/MMBTU for the quantity that is greater than 10% of the MDQ or 1000 MMBTU, whichever is greater. In addition, the quantity delivered in excess of the MDQ shall be charged the Authorized Overrun charge as provided in the applicable rate schedule of Shipper. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 83 First Revised Volume No. 1-A Superseding Original Sheet No. 83 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 21. BALANCING (Continued) (b) Actual delivered quantity exceeds receipt quantity A net positive imbalance shall exist if the difference between the delivered quantity and the quantity received, taking into account the reduction in quantity for compressor fuel use, yields a positive result. Commencing upon notification by PGT of the existence of the imbalance, Shipper shall have 3 days to correct the imbalance. Penalty: If, at the end of the 3 day period the difference between the actual delivered quantity and the receipt quantity is in excess of 10% of the delivered quantity or 1000 MMBTU, whichever is greater, the Shipper shall be assessed a charge of $5/MMBTU applied to the excess quantities. If the imbalance is not corrected within 45 days of PGT's notice of an imbalance, the Shipper shall be assessed an additional charge of $5/MMBTU, applied to the net imbalance remaining at the end of the 45 day balancing period. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 84 First Revised Volume No. 1-A Superseding Original Sheet No. 84 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 21. BALANCING (Continued) (c) Actual quantity received exceeds delivered quantity A net negative imbalance shall exist if the difference between the delivered quantity and the quantity received taking into account the reduction in quantity for compressor fuel use, yields a negative result. Commencing upon notification by PGT of the existence of the imbalance, Shipper shall have 3 days to correct the imbalance. Penalty: If, at the end of the 3 day period the difference between the actual quantity received and the delivered quantity is in excess of 10% of the delivered quantity or 1000 MMBTU, whichever is greater, the Shipper shall be assessed a penalty of $2/MMBTU applied to the excess quantity. If the imbalance is not corrected within 45 days of PGT's notice of an imbalance, PGT shall be able to retain the remaining imbalance quantity without compensation to the Shipper and free and clear of any adverse claim. (d) Scheduled delivery quantity exceeds actual delivered quantity An imbalance shall exist when the quantity scheduled (nominated and confirmed) for delivery exceeds the actual delivered quantity. Penalty: When the difference between the scheduled delivery quantity and actual delivered quantity is in excess of 10% of the actual deliveries, or 1000 MMBTU, whichever is greater, the Shipper shall be assessed the maximum applicable interruptible transportation rate applied to the excess quantities. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 84A First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 21. BALANCING (Continued) (e) Actual delivered quantity exceeds scheduled delivery quantity An imbalance shall exist when the quantity delivered exceeds the quantity scheduled (nominated and confirmed). Penalty: When the difference between the actual delivered quantity and the scheduled delivery quantity is in excess of 10% of the scheduled quantity or 1000 MMBTU whichever is greater, the Shipper shall be assessed a charge of $5/MMBTU applied to the excess quantity. Imbalance determinations as described above will be performed on a daily basis and each daily occurrence will constitute a separate incident. It is recognized and understood that more than one penalty provision may apply to each imbalance incident. In the event that any penalty would otherwise be applicable under these provisions as a direct consequence of any action or failure to take action by PGT or the failure of any facility under PGT's control, or an event of force majeure as defined in these Transportation General Terms and Conditions, said penalty shall not apply. The payment of a penalty in dollars pursuant to Paragraph 21 shall under no circumstances be considered as giving any Shipper the right to deliver or take overrun quantities. Upon termination of a Service Agreement, Shipper shall have 60 days to correct any remaining imbalances. After his period has elapsed, PGT shall have the right to retain any negative imbalance quantity without compensation to the Shipper and shall assess a charge of $5/MMBTU for any positive imbalance quantity as applicable. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 85 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 22. ANNUAL CHARGE ADJUSTMENT (ACA) PROVISION 22.1 Purpose: PGT shall recover from Shippers the annual charge assessedto PGT by the Federal Energy Regulatory Commission for budgetary expenses pursuant to Section 154.38(d)(6) of the Commission's regulations and Order No. 472 issued May 29, 1987. PGT shall recover this charge by means of an Annual Charge Adjustment (ACA); a per unit rate equivalent to the unit rate assessed against PGT by the Commission shall be included in PGT's transportation rates. (During the period that this ACA provision is in effect, PGT shall not recover in a Natural Gas Act Section 4 rate case annual charges recorded in FERC Account No. 928 assessed to PGT by the Commission pursuant to Order No. 472.) 22.2 Filing Procedure: The notice period and proposed effective date of filings pursuant to this paragraph shall be as permitted under Section 4 of the Natural Gas Act; provided, however, that any such filing shall not become effective unless they become effective without suspension or refund obligation. 22.3 ACA Unit Rate Adjustment: PGT's ACA unit rate shall be the unit rate used by the Commission to determine the annual charge assessment to PGT, and shall be reflected in the Statement of Effective Rates and Charges of this FERC Gas Tariff First Revised Volume No. 1-A. 22.4 Affected Rate Schedules: The ACA provision shall apply to all rate schedules contained in PGT's FERC Gas Tariff First Revised Volume No. 1-A. 23. SHARED OPERATING PERSONNEL AND FACILITIES PGT and its marketing affiliate do not share any operating personnel. PGT does not share any facilities with its marketing affiliate. To the extent PG&E elects service under Rate Schedule USS-1, PGT employees involved with the implementation of USS-1 service will operate independently from PGT's pipeline operating employees. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 86 First Revised Volume No. 1-A Superseding Original Sheet No. 86 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 24. COMPLAINT PROCEDURES 24.1 Any Shipper or potential Shipper may register a complaint regarding requested or provided transportation service. The complaint may be communicated to PGT primarily by use of PGT's Electronic Bulletin Board (EBB) and secondarily either orally, and/or in writing. Oral complaints should be made to PGT's Manager of Gas Transportation and Services, telephone (503) 833-4300. Written complaints should be sent via registered or certified mail, facsimile (FAX No. (503) 833-4396) , or hand delivered to: Pacific Gas Transmission Company 2100 Southwest River Parkway Portland, OR 97201 Attention: Manager of Gas Transportation and Services Oral, written and EBB-submitted complaints must contain the following minimum information: - Shipper or potential Shipper's name, address, and FAX and telephone numbers; - Shipper or potential Shipper's contact representative; - A clear, concise statement of the complaint. Each complaint will be recorded in PGT's Transportation Service Complaint Log maintained by PGT's Gas Transportation and Services Department located in Portland. Complaints will be logged by date and time received by PGT. 24.2 PGT will initially respond to each complaint within forty-eight (48) hours after PGT receives it. PGT will provide a written response to each complaint within thirty (30) days after PGT receives it. PGT's written response will be sent to Shipper or potential Shipper by certified or registered mail If the complaint was filed by the EBB, then PGT shall respond via the EBB. A copy of all complaints will be filed in the Transportation Service Complaint Log. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: OCTOBER 18, 1995 Effective: NOVEMBER 18, 1995 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 87 First Revised Volume No. 1-A Superseding First Revised Sheet No. 87 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 25. INFORMATION CONCERNING AVAILABILITY AND PRICING OF TRANSPORTATION SERVICE AND CAPACITY AVAILABLE FOR TRANSPORTATION 25.1 Any affiliated or nonaffiliated Shipper or potential Shipper may obtain information concerning the availability and pricing of PGT's transportation services and the pipeline capacity available for transportation by: (a) Contacting PGT at: Pacific Gas Transmission Company Marketing and Transportation Department 2100 Southwest River Parkway Portland, OR 97201 Telephone: (503) 833-4300 or (California customers) Pacific Gas Transmission Company California Marketing Group 101 Spear Street, Suite 200 San Francisco, CA 94105 Telephone: (415) 778-3000 Fax: (415) 778-3091 Inquiries may be made orally or in writing. Upon request, PGT will provide to any Shipper or potential Shipper a copy of its FERC Gas Tariff, First Revised Volume No. 1-A, as well as any published notices concerning discounts then available to existing Shippers on the PGT system. (b) Subscribing to PGT's twenty-four (24) hour Electronic Bulletin Board by calling 1-503-833-4310. The Electronic Bulletin Board provides current information concerning the availability and pricing of transportation service on the PGT system, including all effective rates and discount notices, and capacity available for transportation. 25.2 The procedures to be followed by a potential Shipper requesting transportation service from PGT or by an existing Shipper requesting an amendment to its existing service or additional service from PGT are specified in Paragraph 18 of these Transportation General Terms and Conditions. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: OCTOBER 18, 1995 Effective: NOVEMBER 18, 1995 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 88 First Revised Volume No. 1-A Superseding First Revised Sheet No. 88 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 25. INFORMATION CONCERNING AVAILABILITY AND PRICING OF TRANSPORTATION SERVICE AND CAPACITY AVAILABLE FOR TRANSPORTATION (Continued) 25.3 The procedures to be followed by Shippers for submitting nominations for transportation service are specified in Paragraph 19 of these Transportation General Terms and Conditions. 26. MARKET CENTERS The Market Center is defined as a point of interconnection between PGT and other pipelines and local distribution companies. PGT shall provide for Market Centers on PGT. Parties wishing to use Market Centers on the PGT system shall contact PGT for this service. At these Market Centers, entities may trade gas quantities without actively shipping the gas either upstream or downstream of the Market Center. Such entities must nominate for the gas transactions in accordance with the nomination procedures of the Transportation General Terms and Conditions of First Revised Volume No. 1-A. An entity's nomination for upstream supply and downstream delivery must match the corresponding upstream Shipper nomination and the downstream customer request. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 88A First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 27. PLANNED PGT CAPACITY CURTAILMENTS AND INTERRUPTIONS 27.1 When PGT needs to temporarily curtail or interrupt service to any Shipper hereunder for the purpose of making planned alterations or repairs, PGT shall give Shipper as much notice as possible of the process so that each Shipper's firm transportation requirements are taken into account in the planning process. 27.2 In the spring of each year PGT shall publish on its electronic bulletin board (EBB) to all Shippers a schedule of planned major maintenance and repairs which affect system capacity. The schedule shall show the estimated delivery point capacity for the next 12 months. 27.3 On a daily basis PGT shall post, on its EBB, capacity for each forthcoming gas day plus the estimated capacity for the next two gas days. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Substitute Original Sheet No. 89 First Revised Volume No. 1-A Superseding Original Sheet No. 89 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE 28.1 Eligibility to Release Any firm Shipper which contracts for firm transportation service under Part 284 of the Commission's regulations (Releasing Shipper) is eligible to release all or part of its capacity (Parcel) for use by another party (Replacement Shipper). Any Replacement Shipper which has previously contracted for a Parcel may also release its capacity to another party as a secondary release subject to the terms and conditions described herein. Upon releasing a Parcel, consistent with the terms and conditions described herein, all Releasing Shippers shall remain ultimately liable for all reservation charges billable for the originally contracted service. The Releasing Shipper, whether a primary or secondary capacity holder, must post the capacity it seeks to release on PGT's Electronic Bulletin Board (EBB) prior to the close of the Posting Period defined herein. A Releasing Shipper may release all or a portion of its capacity for the remainder of the term of its contract and extinguish its contractual obligations to PGT with respect to that portion provided that: 1) the Replacement Shipper for this capacity is creditworthy pursuant to PGT's credit standards; and 2) that the rate paid by the Replacement Shipper be no less than the rate contracted between the Releasing Shipper and PGT for the maximum volume, for the remaining term of the contract or the Releasing Shipper's maximum tariff rate. The release may be structured such that the right of first refusal may transfer to the Replacement Shipper even if the release has recall provisions and has been recalled by the Releasing Shipper at the end of the service agreement. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: OCTOBER 13, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated OCTOBER 01, 1993 Pacific Gas Transmission Company FERC Gas Tariff Sub. Second Revised Sheet No. 90 First Revised Volume No. 1-A Superseding First Revised Sheet No. 90 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.2 Types of Release A Releasing Shipper may release a Parcel for a term (Release Term) up to or equivalent to the remaining term under its service agreement with PGT. Types of releases include: Rapid Release - thirty-one days or less, is not prearranged, requires bidding and is restricted to options 1 or 2 for the allocation of Parcels without special terms or conditions. A standard recall provision may be selected. (Capacity up to the full quantity of the release maybe recallable on 2 business days notice. This capacity may be returned to the Replacement Shipper on 2 business days notice. Replacement Shipper may refuse to accept such capacity returned in this fashion.) Standard Release - greater than or equal to one day, is not prearranged, and requires bidding. Prearranged Deal-A - less than or equal to thirty-one days. This type of release is prearranged and does not require bidding. Such prearranged deals shall be posted for informational purposes within 48 hours after the release transaction commences. This release cannot be rolled-over, renewed or otherwise extended beyond the term described above unless the Releasing Shipper follows the posting and bidding procedures that apply to the particular term sought contained in this Paragraph 28. The Releasing Shipper may not re-release this Parcel to the same Replacement Shipper until 28 days after the term of the initial release has ended. Rollovers are permitted without bidding or a waiting period provided the Prearranged Shipper agrees to pay the maximum rate and meet all the other terms and conditions of the release. Prearranged Deal-B - greater than or equal to thirty-one days at the maximum rate bid pursuant to the methodology selected by Releasing Shipper. This type of release is prearranged and does not require bidding. Prearranged Deal-C - greater than or equal to one day at a rate less than the maximum rate bid pursuant to the methodology selected by the Releasing Shipper. This type of release is prearranged, allows for bidding, and allows the right of first refusal. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Mgr. Gas Supply & Reg. Affairs Issued on: JUNE 19, 1995 Effective: JULY 10, 1995 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RM95-5-00, dated MAY 31, 1995 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 91 First Revised Volume No. 1-A Superseding First Revised Sheet No. 91 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.3 Notice Requirements Any Releasing Shipper electing to release capacity shall submit a notice via PGT's EBB that it elects to release firm capacity. The notice shall set forth the following information: (a) Releasing Shipper's legal name, contract number, and the name, title, address, telephone number, and fax number of the individual responsible for authorizing the release of capacity. (b) Rate schedule of the Releasing Shipper. (c) Whether bidders will bid on the reservation charge or a volumetric equivalent of the maximum reservation charge applicable to the Parcel on a 100% load-factor basis. If a volumetric rate is used, Releasing Shipper must indicate whether bids on a reservation charge basis will be accepted as well and if so must specify the method of evaluating the two types of bids. Releasing Shipper also should indicate whether bids will be accepted on a dollar basis or as a percentage of the Releasing Shipper's as-billed rate. (d) Daily quantity of capacity to be released, expressed in MMBtu/d, at the designated delivery point(s). (This must not exceed Releasing Shipper's maximum contract demand available for capacity release and shall state the minimum quantity expressed in MMBtu/d acceptable for release.) (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 92 First Revised Volume No. 1-A Superseding Original Sheet No. 92 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.3 Notice Requirements (Continued) (e) The term of the release, identifying the date release is to begin and terminate. The minimum release term acceptable to PGT shall be one day. (f) Whether the Releasing Shipper is willing to consider release for a shorter period of time than that specified in (e) above and if so, the minimum acceptable period of release. (g) The receipt and delivery point. (h) Whether Option 1, 2, or 3 shall be used to determine the highest valued bid. If Option 3 is selected, Releasing Shipper must describe the criteria by which bids are to be evaluated. (i) Whether the Releasing Shipper wants PGT to market its released capacity. (j) Whether the Releasing Shipper requests to waive the creditworthiness requirements and agrees in such event to remain liable for all charges, or, if the release is for one year (365 days) or less, whether Releasing Shipper requests that the creditworthiness provisions of Paragraph 18.3(A)(1)(c) shall apply. (k) Whether Releasing Shipper is a marketing or other affiliate of PGT. (l) If release is a prearranged release, the Prearranged Shipper must be qualified pursuant to the criteria of Paragraph 28.6(a) unless waived above. Releasing Shipper shall include the Prearranged Shipper bid information pursuant to Paragraph 28.6(b) with its release information and shall indicate whether the Prearranged Shipper is affiliated with PGT or the Releasing Shipper. (m) Any special nondiscriminatory terms and conditions applicable to the release. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: MAY 31, 1994 Effective: MAY 21, 1994 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-211-000, dated MAY 20, 1994 Pacific Gas Transmission Company FERC Gas Tariff Substitute Original Sheet No. 93 First Revised Volume No. 1-A Superseding Original Sheet No. 93 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.3 Notice Requirements (Continued) (n) Tie-breaker method preferred: (1) pro rata, (2) lottery, (3) order of submission (first-come/first-serve), (4) other. Other method must be objectively stated, administratively feasible as determined by PGT and nondiscriminatory. If none are selected, the system defaults to pro rata. (o) Recall provisions. These provisions must be objectively stated, nondiscriminatory, applicable to all bidders, operationally and administratively feasible as determined by PGT and in accordance with PGT's tariff. (p) The minimum rate (percentage of: reservation charge or a volumetric equivalent of the maximum reservation charge applicable to the Parcel on a 100% load-factor basis) acceptable to Releasor for this Parcel. Releasing Shipper also should indicate whether bids will be accepted on a dollar basis or as a percentage of the Releasing Shipper's as-billed rate. (q) Whether the Releasing Shipper is willing to accept contingent bids that extend beyond the close of the Bid Period and, if so, any nondiscriminatory terms and conditions applicable to such contingencies including the date by which such contingency must be satisfied (which date shall not be later than the last day upon which PGT must award capacity) and whether, or for what time period, the next highest bidder(s) will be obligated to acquire the capacity should the winning contingent bidder be unable to satisfy the contingency specified in its bid. (r) Whether the Releasing Shipper wants to specify a longer bidding period for its Parcel than specified at Paragraph 28.8. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff Substitute Original Sheet No. 94 First Revised Volume No. 1-A Superseding Original Sheet No. 94 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.4 Marketing of Capacity Fee PGT may act as a facilitator between a Releasing Shipper and a Replacement Shipper(s) that wishes to contract for that Releasing Shipper's capacity. All such Parcels must be posted on the EBB initially. A posting of a Parcel facilitated by PGT will include both the Parcel by the Releasing Shipper and the bid by the Prearranged Shipper. A marketing of capacity fee shall be negotiated between PGT and Releasing Shipper in a nondiscriminatory manner. Such a fee will apply when: a Releasing Shipper requests PGT to market released capacity, PGT actively markets such capacity beyond posting on the EBB, and such marketing results in capacity being released to a Replacement Shipper. 28.5 Posting of a Parcel The posting of a Parcel constitutes an offer to release the capacity provided a willing Replacement Shipper submits a valid bid consistent with PGT's Transportation General Terms and Conditions. The posting must contain the information contained in Paragraph 28.3. Any specific conditions posted by the Releasing Shipper must be operationally feasible, nondiscriminatory to other shippers, and in conformance with PGT's tariffs. If the Parcel is being released as a secondary release, then any recall provisions included in the primary release which may affect the re-release of this capacity must be included in the terms and conditions of the secondary release. Each Parcel will be reviewed by PGT prior to posting on the EBB for bidding. The receipt of a valid release will be acknowledged by the issuance of a release confirmation to the Releasing Shipper's EBB mailbox by PGT. It is the Releasing Shipper's sole responsibility to provide release and Prearranged Shipper bid information in advance of the close of the Posting Period. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: OCTOBER 13, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated OCTOBER 01, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 95 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.5 Posting of a Parcel (Continued) Releasing Shippers who elect to release capacity and select Option 3 for the highest valued bid methodology and/or include, in their release, nondiscriminatory recall provisions and/or special terms and conditions are required to submit their request to release capacity by 12:00 p.m. Pacific Time at least two business days before the close of the Posting Period. This is to ensure adequate time for PGT to review and validate that the Option 3 criteria and/or any recall and special terms and conditions are not discriminatory. All Prearranged Shipper bids are subject to the Prearranged Shipper(s) meeting the preliminary qualifications as defined in Paragraph 28.6(a) for Replacement Shippers. A Parcel may be revised or withdrawn by the Releasing Shipper at any time prior to the close of the Posting Period. A Parcel cannot be revised after the close of the Posting Period. Parcels may be withdrawn subsequent to the close of the Posting Period and up until the close of the Bid Period only in situations where the Releasing Shipper has an unanticipated need for the capacity. In such instances, Releasing Shipper shall notify PGT via the EBB of its need to withdraw the Parcel due to an unanticipated need for the capacity. The withdrawal or revision of a Parcel will terminate all bids submitted for that Parcel to date. Replacement Shippers will need to resubmit their bids for the Parcel if the Parcel is resubmitted for release. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 96 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.6 Bidding for a Parcel (a) Preliminary Qualification To bid for a Parcel, a Replacement Shipper must: pre-qualify by submitting a completed request for authority to bid for a Parcel, meet PGT's credit criteria, and execute an FTS-1 service agreement for capacity release as set forth in these Transportation General Terms and Conditions. Replacement Shippers may carry out these requirements through the use of PGT's EBB. Replacement Shippers are encouraged to pre-qualify in advance of any postings on PGT's EBB as credit requirements will take differing amounts of time to process depending on the particular financial profile of Replacement Shippers. The pre-qualification process will authorize a pre-set maximum monthly financial exposure level for the Replacement Shipper. Such exposure levels may be adjusted by PGT periodically re-evaluating a Replacement Shipper's credit-worthiness. Releasing Shippers may exercise their option to waive the credit requirements for any Replacement Shipper wishing to bid on a Parcel posted by that Releasing Shipper. Such waiver must be made on a nondiscriminatory basis. PGT must be informed of such waiver via the EBB before it will authorize such Replacement Shipper's participation with respect to that particular Parcel. In this instance, no pre- set maximum monthly financial exposure level is applicable. Should a Releasing Shipper waive the credit requirements for a Replacement Shipper, the Releasing Shipper shall be liable for all charges incurred by the Replacement Shipper in the event such Replacement Shipper defaults on payment to PGT for such capacity release service. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 97 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.6 Bidding for a Parcel (Continued) (a) Preliminary Qualification (Continued) The execution of the FTS-1 service agreement for capacity release is to be signed "electronically" by the Replacement Shipper. The Replacement Shipper shall execute the FTS-1 service agreement for capacity release (exhibits excluded) through the use of an authorization code procedure on the EBB. Upon notification by PGT of an award of a Parcel, PGT shall complete Exhibit R with the particulars of the awarded Parcel and Replacement Shipper shall execute, electronically, Exhibit R to the FTS-1 service agreement for capacity release. A hard copy of the FTS-1 service agreement for capacity release, including Exhibit R (signed by hand by PGT and Replacement Shipper), will follow subsequent to the awarding of a Parcel. A Replacement Shipper that subsequently obtains additional Parcels is not required to execute an additional FTS-1 service agreement for capacity release; rather, for each such additional Parcel obtained, an additional Exhibit R (designated sequentially "Exhibit R-2", "Exhibit R-3", etc.) will be executed and amended to such Replacement Shipper's FTS-1 service agreement for capacity release. Once the Replacement Shipper has met PGT's preliminary contractual and credit requirements, PGT will amend the Replacement Shipper's authorization to add access to the bidding and releasing portions of PGT's capacity release program on its EBB. This authorization, in combination with the Replacement Shipper's password, which will be unique and known only by the Replacement Shipper, will entitle the (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 98 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.6 Bidding for a Parcel (Continued) (a) Preliminary Qualification (Continued) Replacement Shipper to submit a bid for a Parcel. Once a Replacement Shipper has acquired capacity, authority is granted to the Replacement Shipper to release that capacity. The execution of the FTS-1 service agreement for capacity release and use of this authorization to submit a bid or to release capacity will constitute an obligation on the part of the Replacement Shipper to be bound by the terms and conditions of PGT's capacity release program as set forth in these Transportation General Terms and Conditions. (b) Submitting a Bid All bids must be submitted through the use of PGT's EBB. Such bids shall be "open" for all participants to review. The particulars of all bids will be available for review but not the identity of bidders. PGT will post the identity of the winning bidder(s) only. A Replacement Shipper cannot request that its bid be "closed", nor can a Releasing Shipper specify that "closed" bids be submitted on its releases. A Replacement Shipper may submit only one bid per Parcel posted at any one point in time. Bids received after the close of the Bid Period shall be invalid. The Replacement Shipper may bid for no more than the quantity of the Parcel posted by the Releasing Shipper. Simultaneous bids for more than one Parcel are permitted. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 99 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.6 Bidding for a Parcel (Continued) (b) Submitting a Bid (Continued) A valid bid to contract for a Parcel must contain the following information: (1) Replacement Shipper's legal name, address, telephone and fax numbers and the name and title of the individual responsible for authorizing the bid. (2) The identification of the Parcel bid on. (3) Term of service requested. The term of service must not exceed the term included in the Parcel. (4) Percentage of the applicable maximum rate, as identified in the Parcel, that Replacement Shipper is willing to pay. A Replacement Shipper may not bid below the minimum applicable charge or rate nor above the maximum authorized charge or rate for the Parcel. (5) The quantity desired not to exceed the quantity contained in the Parcel, expressed on a MMBtu/d delivered basis and greater than the minimum quantity acceptable to Replacement Shipper. (6) Under Options 1 or 2 acceptance or rejection of all recall provisions and special nondiscriminatory terms and conditions of service associated with the release. Rejection of any terms results in an invalid bid. (7) Whether or not Replacement Shipper is an affiliate of the Releasing Shipper. (8) A statement as to whether or not Replacement Shipper is affiliated with PGT. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al, dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 100 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.6 Bidding for a Parcel (Continued) (b) Submitting a Bid (Continued) (9) An affirmative statement that Replacement Shipper agrees to be bound by the terms and conditions of Rate Schedule FTS-1 and PGT's capacity release provisions in its tariff. (10) Whether the bid is a contingent bid and the contingencies which must be satisfied by the date specified by the Releasing Shipper in its posting of the Parcel. (c) Confirmation of Bids The receipt of a valid bid by PGT will be acknowledged by the issuance of a bid confirmation to the Replacement Shipper's EBB mailbox by PGT. It is the Replacement Shipper's sole responsibility to verify the correctness of the submitted bid and to take any corrective action necessary by resubmitting a bid when notified of an invalid or incomplete bid by PGT via the EBB. This must be done before the close of the Bid Period. (d) Withdrawn or Revision of Bids A previously submitted bid may be withdrawn or revised and resubmitted at any time prior to the close of the Bid Period with no obligation on the Replacement Shipper's part. Resubmitted bids must be equal to or greater in value than the initial bids. Lower valued bids will be invalid. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 101 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.7 Allocation of Parcels (a) Primary Allocation Winning bids for Parcels shall be awarded based on one of the following three options to be selected by the Releasing Shipper when posting a Parcel: Option 1 - Price Bids will be given priority based on the maximum rate bid as represented by a Replacement Shipper's bid of the percentage of: the maximum authorized reservation charge or a volumetric equivalent of the maximum reservation charge applicable to the Parcel on a 100% load factor basis. Releasing Shippers using a volumetric rate and wishing to accept reservation charge bids will be considered an Option 3 criteria. In this instance Releasing Shipper must define the method for evaluating such bids. A bid queue will be maintained for each individual Parcel. Option 2 - Net Present Value Bids will be given priority based on the net present value per MMBtu for the term of the bid according to the following formula: n (1 + i) -1 Present Value per unit = P * R * _________ n i (1 + i) where: P = percent of the rate or charge that the Replacement Shipper is willing to pay. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 102 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.7 Allocation of Parcels (Continued) (a) Primary Allocation (Continued) R = Rate or charge calculated as: The maximum authorized reservation charge (or a volumetric equivalent of the maximum reservation charge applicable to the Parcel on a 100% load factor basis) in effect at the time of the bid for service from the same receipt point to the same delivery point under the Releasing Shipper's rate schedule. i = FERC's annual interest rate divided by 12. n = number of periods for which the bidder wishes to contract, not to exceed the maximum periods to be released by the Releasing Shipper. For releases greater than or equal to one month, the period is the number of months. For releases less than one month the period is the number of days. A bid queue will be maintained for each individual Parcel. Option 3 - Releasing Shipper's Criteria for Highest Valued Bids Bids will be given priority based on the criteria established by the Releasing Shipper for determining the highest valued bids. The criteria must be objectively stated, applicable to all potential bidders, operationally and administratively feasible as determined by PGT, nondiscriminatory, and in conformance with PGT's tariff. A bid queue will be maintained for each individual Parcel. If Releasing Shipper does not specify an option for determining best bid, Option 2 will be the default option used. Under all options, PGT will evaluate and rank all bids for Parcels. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02,1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 103 First Revised Volume No. 1-A Superseding Original Sheet No. 103 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.7 Allocation of Parcels (Continued) (b) Right of First Refusal In the case of a Prearranged Shipper's bid for a Parcel with a term equal to one month or greater, at a rate other than at the highest valued bid, pursuant to the methodology specified by the Releasing Shipper, if the bid submitted by a subsequent Replacement Shipper exceeds the value of the Prearranged Shipper's bid, the Prearranged Shipper will be allowed to match the higher valued bid. The Prearranged Shipper will be allowed 1 business day from the close of the Bid Reconciliation Period to match the higher valued bid, otherwise, the allocation will be awarded to subsequent Replacement Shipper(s) in accordance with the primary and secondary allocation mechanisms. (c) Secondary Allocation To the extent there is more than one Replacement Shipper submitting a winning bid, the Parcel shall be allocated based on one of the following tie-breaker methodologies to be selected by the Releasing Shipper: pro rata, lottery, order of submission (first come/first serve), or by a method designated by the Releasing Shipper. Releasing Shipper's method must be objectively stated, applicable to all bidders, nondiscriminatory, administratively feasible as determined by PGT and in accordance with PGT's tariffs. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 104 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.7 Allocation of Parcels (Continued) (d) Confirmation of Allocation Upon each completion of an allocation, the successful Replacement Shipper(s) will be notified of the terms under which they have contracted for the awarded Parcel. The notification will be provided in the form of a notice in the Replacement Shipper's EBB mailbox. The notice will include an Exhibit R to the Replacement Shipper's Rate Schedule FTS-1 service agreement for capacity release which specifies the pertinent terms of the Replacement Shipper's bid as well as any additional terms specified by the Releasing Shipper. The Releasing Shipper will be notified of the terms under which its Parcel has been awarded. The notification will be provided in the form of a notice in the Releasing Shipper's EBB mailbox. The notification will include an Exhibit C to the Releasing Shipper's service agreement which specifies the pertinent terms of the credit to be applied to the Releasing Shipper as a result of the awarding of Parcel to the Replacement Shipper(s). In the case of multiple Replacement Shippers and Parcels, an Exhibit C to the Releasing Shippers' service agreement will be generated for each Parcel and Replacement Shipper. The Exhibit C's shall be numbered sequentially as Exhibit C-1, C-2, etc. (e) Purging of Expired Bids All unfulfilled bids, as well as any unfulfilled portions of bids which receive a partial award, will become ineffective as of the completion of bid reconciliation and the close of the Bid Period. Each unsuccessful Replacement Shipper which has bid shall receive a notice in its EBB mailbox indicating the ineffectiveness of the bid. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 105 First Revised Volume No. 1-A Superseding Original Sheet No. 105 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.7 Allocation of Parcels (Continued) (e) Purging of Expired Bids (Continued) Information regarding all bids for all Parcels shall be archived off-line before being purged from the system. 28.8 Scheduling of Parcels, Bids and Notifications (a) Rapid Release - one month or less, not prearranged. Posting Period - up to 12:00 p.m. Pacific Time on the 2nd business day before the commencement of the Release Term. Bid Period - a minimum period of 2 hours subsequent to the close of the Posting Period. The bid period may be extended by the Releasing Shipper. The Bid Period closes at 2:00 p.m. Pacific Time on the 2nd business day before the commencement of the Release Term. Notification of the results of the bidding for Parcels will be posted at 2:00 p.m. Pacific Time on the 2nd business day prior to the commencement of the Release Term. (b) Standard Release-greater than or equal to one day, not prearranged. Posting Period - up to 12:00 p.m. Pacific Time 5 business days prior to the commencement of the Release Term. Bid Period - a minimum period of 1 business day subsequent to the close of the Posting Period. The Bid Period closes at 2:00 p.m. Pacific Time 4 business days prior to the commencement of the Release Term. Bid Reconciliation Period - a period of 2 business days subsequent to the close of the Bid Period. The Bid Reconciliation Period closes at 2:00 p.m. Pacific Time 2 business days prior to the commencement of the Release Term at which time notification of the results of the bidding for Parcels will be posted. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Sub. Second Revised Sheet No. 106 First Revised Volume No. 1-A Superseding First Revised Sheet No. 106 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.8 Scheduling of Parcels, Bids and Notifications (Continued) (c) Prearranged Deal-A - less than or equal to thirty-one days. Releasing Shipper must inform PGT via the EBB of the particulars of the prearranged deal by 12:00 p.m. Pacific Time on the 2nd business day before the commencement of the Release Term. Posting Period - PGT will post the particulars of the prearranged deal no later than 12:00 p.m. Pacific Time 2 business days after the commencement of the Release Term. (d) Prearranged Deal-B - equal to or greater than thirty-one days at the highest valued bid pursuant to the methodology selected by the Releasing Shipper. Posting Period - Releasing Shipper must submit the particulars of the prearranged deal to PGT for posting on the EBB no later than 12:00 p.m. Pacific Time 2 business days before the commencement of the Release Term. (e) Prearranged Deal-C - greater than or equal to one day. Posting Period - up to 12:00 p.m. Pacific Time on the 6th business day before the commencement of the Release Term. Bid Period - a minimum period of 1 business day subsequent to the close of the Posting Period. The Bid Period closes at 2:00 p.m. Pacific Time on the 5th business day before the commencement of the Release Term. Bid Reconciliation Period - a period of 2 business days subsequent to the close of the Bid Period. The Bid Reconciliation Period closes at 2:00 p.m. Pacific Time on the 3rd business day before the commencement of the Release Term. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Mgr. Gas Supply & Reg. Affairs Issued on: JUNE 19, 1995 Effective: JULY 10, 1995 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RM95-5-000, dated MAY 31, 1995 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 107 First Revised Volume No. 1-A Superseding Original Sheet No. 107 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.8 Scheduling of Parcels, Bids and Notifications (Continued) (e) Prearranged Deal-C - greater than or equal to one day (Continued) Match Period - a period of 1 business day subsequent to the close of the Bid Reconciliation Period. The Match Period closes at 2:00 p.m. Pacific Time on the 2nd business day before the commencement of the Release Term. At that time results of the bidding shall be posted no later than 2:00 p.m. Pacific Time on the 2nd business day before the commencement of the Release Term. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 108 First Revised Volume No. 1-A Superseding Original Sheet No. 108 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) Reserved For Future Use. ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 109 First Revised Volume No. 1-A Superseding Original Sheet No. 109 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.9 Crediting, Billing Adjustments and Refunds (a) Eligibility PGT shall provide revenue credits to any Releasing Shipper which releases capacity to a Replacement Shipper pursuant to the provisions of Paragraph 28. (b) Monthly Crediting Procedure Revenue credits for released capacity shall be credited monthly as an offset to a Releasing Shipper's reservation charge (or the volumetric equivalent of the reservation charge on a 100% load- factor basis applicable to the Releasing Shipper. This shall also be referred to in this Paragraph 28.9 as the equivalent volumetric rate) payable to PGT under the applicable rate schedule for the service that has been released. PGT shall credit each month to the Releasing Shipper's account 100% of the revenues from the charges invoiced to the Replacement Shipper(s) for the reservation charge (or equivalent volumetric rate). (c) Billing Adjustments PGT shall apply the revenues received from Replacement Shippers first to the reservation charge (or equivalent volumetric rate), next to the GRI reservation surcharge. Should Replacement shipper default on payment to PGT of the reservation charge (or equivalent volumetric rate) PGT shall bill Releasing Shipper for such unpaid charges and apply interest to such adjustments in accordance with the provisions of Paragraph 8 of the Transportation General Terms and Conditions. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13, 1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 110 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) 28.9 Crediting, Billing Adjustments and Refunds (Continued) (d) Excess Revenue Credits Releasing Shipper is entitled to excess revenue credits resulting when the reservation charge (or equivalent volumetric rate) revenues actually received by PGT from the Replacement Shipper(s) exceed the reservation charge (or equivalent volumetric rate) revenues which would have been received by PGT from the Releasing Shipper if capacity was not released. (e) Refunds PGT shall track all changes in its rates approved by the Commission. In the event the Commission orders refunds of any such rates charged by PGT and previously approved, PGT shall make corresponding refunds to all affected Shippers including Shippers receiving capacity release service. In such instances when rates to Replacement Shippers are reduced, PGT shall make corresponding adjustments to the crediting of revenues to Releasing Shippers for the period such refunds are payable. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 111 First Revised Volume No. 1-A Superseding Original Sheet No. 111 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) (STANDARD RELEASE) SEE GRAPHIC INDEX AT REAR OF DOCUMENT. (CAPACITY RELEASE TIMELINE GRAPH) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Sheet No. 112 First Revised Volume No. 1-A Superseding Original Sheet No. 112 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) (RAPID RELEASE) SEE GRAPHIC INDEX AT REAR OF DOCUMENT. (CAPACITY RELEASE TIMELINE GRAPH) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Sub. Second Revised Sheet No. 113 First Revised Volume No. 1-A Superseding First Revised Sheet No. 113 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) (PRE-ARRANGED DEAL - A) SEE GRAPHIC INDEX AT REAR OF DOCUMENT. (CAPACITY RELEASE TIMELINE GRAPH) ________________________________________________________________________________ Issued by: R.T. Howard, Mgr. Gas Supply & Regulatory Affairs Issued on: JUNE 19, 1995 Effective: JULY 10, 1995 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RM95-5-000, dated MAY 31, 1995 Pacific Gas Transmission Company FERC Gas Tariff Sub. Second Revised Sheet No. 114 First Revised Volume No. 1-A Superseding First Revised Sheet No. 114 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) (PRE-ARRANGED DEAL - B) SEE GRAPHIC INDEX AT REAR OF DOCUMENT. (CAPACITY RELEASE TIMELINE GRAPH) ________________________________________________________________________________ Issued by: R.T. Howard, Mgr. Gas Supply & Reg. Affairs Issued on: JUNE 19, 1995 Effective: JULY 10, 1995 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RM95-5-000, dated MAY 31, 1995 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 115 First Revised Volume No. 1-A Superseding Original Sheet No. 115 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 28. CAPACITY RELEASE (Continued) (PRE-ARRANGED DEAL - C) SEE GRAPHIC INDEX AT REAR OF DOCUMENT. (CAPACITY RELEASE TIMELINE GRAPH) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 116 First Revised Volume No. 1-A Superseding Sheet Nos. 116 - 118 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) Reserved For Future Use ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 119 First Revised Volume No. 1-A Superseding Original Sheet No. 119 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 29. FLEXIBLE RECEIPT AND DELIVERY POINTS 29.1 Firm Service (a) Addition of a Receipt Point Any firm Shipper receiving service under Part 284 of the Commission's regulations is entitled to use the receipt point specified in its service agreement as a primary receipt point. A firm Shipper may add a secondary receipt point, provided the secondary receipt point is downstream of the primary receipt point at any time during the life of the contract. Firm Shippers who are billed under a reservation charge and a delivery rate will continue to be billed reservation charges based on the primary receipt point while delivery rates, including fuel, will be calculated on the receipt point actually used. To the extent additional meter station capacity or other facilities are required to effect the receipt point change, PGT will construct the additional capacity consistent with Paragraph 18.5. (b) Changing a Receipt Point A firm Shipper may change primary receipt points to a downstream receipt point but will continue to be billed reservation charges based on the original primary receipt point. Changes in receipt points will be permitted provided sufficient receipt point capacity exists at the receiving meter station and subject to any operating constraints. To the extent additional meter station capacity or other facilities are required to effect the receipt point change, PGT will construct the additional capacity at the firm Shipper's expense consistent with Paragraph 18.5. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 120 First Revised Volume No. 1-A Superseding Original Sheet No. 120 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 29. FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued) 29.1 Firm Service (Continued) (c) Addition of a Delivery Point Each firm Shipper is entitled to an allocation of its MDQ to a delivery point(s) as its primary delivery point(s). A firm Shipper may add secondary delivery points provided the secondary delivery points are upstream of the primary delivery point, at any time during the life of the contract. In this case, the firm Shipper will continue to be billed any applicable reservation charges based on the primary delivery point; however, delivery rates, including fuel, will be calculated based on the delivery point actually used. A firm Shipper with primary deliveries allocated to a minor delivery point may add secondary delivery points to its contract provided that the addition of the secondary delivery point does not materially impact service to other firm Shippers. To the extent additional meter station capacity is required to effect the delivery point(s) change, and subject to any operating constraints PGT will construct the additional capacity consistent with Paragraph 18.5. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 121 First Revised Volume No. 1-A Superseding Original Sheet No. 121 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 29. FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued) 29.1 Firm Service (Continued) (d) Changing a Delivery Point A firm Shipper may change primary delivery points, to an upstream delivery point but will continue to be billed reservation charges based on the original primary delivery point. Changes in delivery points will be permitted provided sufficient delivery point capacity exists at the delivery meter station. To the extent additional meter station and subject to any operating constraints capacity is required to effect the delivery point change, PGT will construct the additional capacity at the firm Shipper's expense consistent with Paragraph 18.5. A firm Shipper with primary deliveries allocated to a minor delivery point may change primary delivery points in its contract provided that the change of primary delivery point does not materially impact service to other firm Shippers. 29.2 Interruptible Service (a) Change of a Receipt/Delivery Point Interruptible Shippers will have the right to flexible receipt and delivery points, at a lower priority than firm or released services. (b) Addition of a Receipt Point Except as otherwise provided in this paragraph, Shippers receiving service under any Part 284 interruptible transportation rate schedule may add any receipt point downstream of the primary receipt point on the PGT system at any time during the life of the contract with no effect on the Interruptible Shipper's previously granted interruptible transportation priority. However, requests by an interruptible Shipper to increase its total MDQ and/or to add an upstream receipt point will be considered a new request for service. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 122 First Revised Volume No. 1-A Superseding Original Sheet No. 122 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 29. FLEXIBLE RECEIPT AND DELIVERY POINTS (Continued) 29.2 Interruptible Service (Continued) (c) Addition of a Delivery Point An Interruptible Shipper may request interruptible service at additional delivery points at any time. The request of an additional downstream delivery point, or a request to increase the delivery quantity at an existing delivery point, will be considered a new request for service with priority assigned in accordance with Paragraph 19.2. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: FEBRUARY 28, 1994 Effective: APRIL 01, 1994 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 123 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 30. GAS SUPPLY RESTRUCTURING TRANSITION COSTS 30.1 Purpose This Paragraph 30 establishes the means by which PGT shall recover GSR Costs. PGT will make one or more separate rate filings to recover GSR Costs pursuant to this Paragraph 30. 30.2 Definitions The following defines certain terms as they are used in this Paragraph 30: (a) "Gas Supply Restructuring Costs" shall mean amounts in cash or other consideration eligible for recovery under Order Nos. 500, et seq., or 528, et seq., or 636, et seq., or which are incurred to restructure, reform or terminate the existing International Contract between PGT and A&S and underlying A&S gas supply contracts, or to resolve claims by Canadian gas suppliers related to past or future liabilities or obligations of PGT or A&S under the International Contract and underlying A&S gas supply contracts. (b) "The Initial GSR Cost Collection Period" will consist of the three (3) years commencing with the effective date of the rate filing to recover GSR Costs. An Initial GSR Cost Collection Period shall apply to each rate filing PGT makes to recover GSR Costs. (c) "Carryover GSR Cost Collection Period" will consist of the extension of the Initial GSR Collection Period in accordance with Paragraph 30.6 hereof to complete the full recovery (but no overrecovery) of PGT's GSR Costs. (d) "Approved GSR Costs" shall mean those GSR costs as defined in Paragraph 30.2(a) above, which are approved by FERC for recovery by PGT through the Transition Cost Recovery Mechanism as defined in this Paragraph 30. (e) "Northwest Shippers", for purposes of this paragraph, are defined as Washington Natural Gas Company, Cascade Natural Gas Company, Washington Water Power Company/WP Natural Gas and Northwest Natural Gas Company. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Substitute Original Sheet No. 124 First Revised Volume No. 1-A Superseding Original Sheet No. 124 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 30. GAS SUPPLY RESTRUCTURING TRANSITION COSTS (Continued) 30.3 Applicability of GSR Transition Costs GSR Transition Costs shall be applicable to all Shippers except those firm Shippers paying incremental rates on PGT which are also Supporting Parties to the FERC-approved settlement in Docket No. RS92- 46-000. 30.4 Recovery of Surcharge Amounts PGT shall recover from each Shipper meeting the applicability criteria defined in Paragraph 30.3 the affected Shipper's GSR Surcharge amounts and Direct Bill, if applicable, during the Initial GSR Cost Collection Period and shall continue to recover such amounts during any applicable Carryover GSR Cost Collection Period as necessary to complete the full recovery (but no overrecovery) of PGT's GSR Costs. 30.5 Transition Cost Recovery Mechanism (a) Absorption -- PGT's shareholder shall absorb 25% of all Approved GSR Costs. (b) Direct Bill -- 25% of all Approved GSR Costs will be recovered by PGT through a Direct Bill. A Direct Bill will be assessed to PG&E for 100% of the Direct Bill amount, excluding the amount to be collected from the Northwest Shippers and credited against the Direct Bill portion as defined in Paragraph 30.5(d). PG&E may pay its Direct Bill in a lump sum, plus carrying charges on the principal amount accrued, in accordance with Paragraph 30.5(e) until the payment is made. In lieu of paying the Direct Bill in a lump sum, PG&E may elect one of three payment schedules. PG&E's Direct Bill amount and the monthly amount due under each extended payment option, which shall include carrying charges accrued on the unpaid balance in accordance with Paragraph 30.5(e), shall be specified in the Statement of Effective Rates and Charges of First Revised Volume No. 1-A. (c) GSR Transition Cost Surcharge -- 50% of all Approved GSR Costs will be recovered by PGT through a volumetric MMBtu-mile surcharge. The GSR Transition Cost Surcharge shall include any applicable carrying charges accruing on the unrecovered balance. The GSR Transition Cost Surcharge shall be stated in the Statement of Effective Rates and Charges of PGT's FERC Gas Tariff First Revised Volume No. 1-A as the same may change from time to time, depending on PGT's GSR Costs. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: DECEMBER 10, 1993 Effective: NOVEMBER 15, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-24-000, dated NOVEMBER 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 125 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 30. GAS SUPPLY RESTRUCTURING TRANSITION COSTS (Continued) 30.5 Transition Cost Recovery Mechanism (Continued) (d) Northwest Shippers' GSR Cost Responsibility -- All Northwest Shippers (excluding Washington Natural Gas Company) shall pay a Direct Bill and Washington Natural Gas shall pay a GSR transition cost surcharge (different from that provided in (c) above) for their share of GSR transition costs. The Northwest Shippers' responsibility shall be equal to 1.3 percent of the Approved GSR costs that are not absorbed by PGT and in any event shall not exceed a total of $1,454,000. Of this amount, one-third, up to $485,000, will be credited against the amount allocated to the Direct Bill as described in Paragraph 30.5(b), and two-thirds, up to $969,000, will be credited against the amount allocated to the GSR surcharge provided in Paragraph 30.5(c). The amounts allocated to the Northwest Shippers as a group will be allocated among the individual Northwest Shippers based on the percentages shown below and will not exceed the applicable total amount for each Shipper. Total Percentage Amount Washington Natural Gas Company 55.02% up to $ 800,000 Cascade Natural Gas Corporation 24.07% up to 350,000 Washington Water Power Company/ WP Natural Gas 18.57% up to 270,000 Northwest Natural Gas Company 2.34% up to 34,000 Total Northwest Shippers 100.00% $1,454,000 Washington Water Power Company/WP Natural Gas (WWP), Cascade Natural Gas Corporation (CNG), and Northwest Natural Gas Company (NNG) will be billed and will pay immediately all amounts of the Approved GSR Costs allocated to them up to the total maximums noted above. The total amount allocated to Washington Natural Gas Company (WNG) will be recovered through a volumetric surcharge over a three-year amortization period based on the approved commodity throughput for WNG. Any amounts not recovered at the end of the 36-month amortization period will be due and payable in one lump sum. Once the maximum GSR Costs applicable to Northwest Shipper(s), as such amounts may be adjusted pursuant to the application of rolled-in rates on the PGT system, have been collected then the GSR Cost tariff provisions will no longer apply to such Northwest Shipper(s). (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Substitute Original Sheet No. 126 First Revised Volume No. 1-A Superseding Original Sheet No. 126 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 30. GAS SUPPLY RESTRUCTURING TRANSITION COSTS (Continued) 30.5 Transition Cost Recovery Mechanism (Continued) (e) Carrying Charges -- Carrying charges shall accrue beginning on the effective date of PGT's filing to recover GSR costs or the date PGT initiates payment for GSR costs, whichever is later. Carrying charges shall be calculated in accordance with Section 154.67 of the Commission's regulations. 30.6 Reconciliation (a) At the conclusion of the Initial GSR Cost Collection Period, PGT will determine its GSR Costs and the actual amounts of GSR Transition Cost Surcharge revenues. (b) If PGT's collections hereunder shall equal or exceed its GSR Costs, PGT shall file to terminate further collections hereunder. The amount of any excess collected shall be repaid to all Shippers affected hereby in proportion to the principal amount of GSR Transition Cost Surcharge payments they have provided pursuant to this Paragraph 30. Within ninety (90) days of the termination of collections pursuant to this Paragraph 30, PGT will submit a report to the Commission setting out a comparison of its GSR costs and the amounts collected hereunder and any repayments to be provided hereunder. Within thirty (30) days of the Commission's approval of such report, repayments, with applicable carrying charges, shall be paid. (c) If PGT's collections hereunder are less than its GSR Costs, PGT shall be permitted to recover such deficiency, including carrying charges, during the Carryover GSR Cost Collection Period by filing with the Commission GSR Transition Cost Surcharges within ninety (90) days of the conclusion of the Initial GSR Cost Collection Period. The GSR Transition Cost Surcharge will be determined by dividing the remaining GSR costs by the applicable quantities underlying PGT's then-effective rates. The GSR Transition Cost Surcharge shall be effective on the first day of the month following Commission approval of such filing. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: OCTOBER 13, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated OCTOBER 01, 1993 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 127 First Revised Volume No. 1-A Superseding First Revised Sheet No. 127 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 31. Reserved (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13,1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 128 First Revised Volume No. 1-A Superseding Original Sheet No. 128 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) Reserved for future use. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13,1996 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 129 First Revised Volume No. 1-A Superseding First Revised Sheet No. 129 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 32. EQUALITY OF TRANSPORTATION SERVICE PGT hereby states that the terms and conditions of service for all unbundled sales and transportation services provided in PGT's FERC Gas Tariff Second Revised Volume No. 1 and First Revised Volume No. 1-A, are provided on a basis that is equal in quality for all Shippers. All Shippers can access all sellers of gas and receive the same quality of service on PGT whether their gas supplies are purchased from PGT or any other seller. Furthermore, no preference is accorded to any affiliate of PGT for sales and transportation services provided by PGT. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13,1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 130 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 33. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE AGREEMENT Firm Shippers (original capacity holders) under PGT's firm transportation rate schedules of First Revised Volume No. 1-A shall have the right of first refusal at the termination of their service agreements. Original capacity holders must notify PGT one year prior to termination of their intent to terminate the service agreement. One year prior to the expiration of the service agreement, PGT will post a notice on its EBB that the original capacity holder's service agreement will terminate in one year and the original capacity holder has either elected or not elected to terminate. 33.1 In the event original capacity holder elects termination, PGT shall subject this capacity to a bidding process. PGT shall require bids be submitted no later than 6 months prior to the service agreement expiration. The bid period will be 2 months. PGT will announce the bid winner(s) 1 month after the close of the bid period. Tied bids will be awarded on a pro rata basis. Winning Shipper(s) and PGT must execute a new firm transportation service agreement prior to service commencement. 33.2 In the event original capacity holder does not elect termination, PGT will commence open bidding 6 months prior to the service agreement termination. The bid period will be 1 month. The original capacity holder will have 1 month from the close of the bid period to match the highest bid(s). PGT will announce the winning bid(s) within 1 month after the close of the match period. If the original capacity holder matches the highest bid(s), the capacity is awarded to the original capacity holder. If the original capacity holder does not match the highest bid(s), the original capacity holder's bid shall be rejected. If there is more than one winning bid, PGT shall award capacity on a pro rata basis. New Shippers must execute a firm transportation service agreement with PGT prior to service commencement. Original capacity holder is allowed to retain a portion of its capacity by matching price and term according to the procedure outlined in this provision. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 131 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 33. RIGHT OF FIRST REFUSAL UPON TERMINATION OF FIRM SHIPPER'S SERVICE AGREEMENT (Continued) 33.3 Bids shall be evaluated on the net present value incorporating price and term. The price shall be the rate Shippers are willing to pay up to the maximum authorized rate. The maximum term is 20 years. 33.4 If there are no competing bids other than that of the original capacity holder, the rate and terms of continuing service is to be negotiated between existing capacity holder and PGT. In addition, in this instance, if the existing capacity holder agrees to pay the maximum authorized rate, the existing capacity holder may determine the term it desires and PGT must extend its contract to the existing capacity holder accordingly. 33.5 Shippers who terminate their service agreements are not liable for any reservation charges or other charges applicable to the new Shipper contracting for this capacity. 33.6 Only bona fide bids will be accepted. A bona fide bid offer shall be: (a) submitted via PGT's EBB; (b) accepted in principle; and (c) pursuant to an arms-length transaction. If the Service Agreement is not executed within 30 days, the request for capacity shall expire without prejudice to the prospective Shipper's right to submit a new request for capacity. PGT shall then notify the Shipper via the EBB of the acceptable offer, if any, having the next greatest economic value in accordance with the provisions of this Paragraph. If there is no other acceptable offer, the Shipper may continue service in accordance with this Paragraph. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 132 First Revised Volume No. 1-A Superseding First Revised Sheet No. 132 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 34. ELECTRONIC BULLETIN BOARD 34.1 General PGT shall use its Electronic Bulletin Board (EBB), "Pacific Trail" for capacity release. PGT shall maintain an EBB which will provide a range of electronic pipeline services and information to all parties on a nondiscriminatory basis. The EBB is available to any party that has compatible equipment for electronic communication and transmission of data. Access to the EBB is obtained by contacting PGT's Gas Control Department at 1-800-238-2781 and requesting a user identification. The EBB will operate 24 hours a day; however, certain functions may be limited to specific operating times during the business day. There is no direct connection charge to use the EBB. However, PGT reserves the right to change the telephone access from an "800" number to a "900" number at its sole discretion. PGT shall exercise reasonable efforts to ensure the accuracy and security of information presented on the EBB. 34.2 Menu of Services and Information PGT's EBB will provide the following main menu of services and information: (a) Capacity Release (b) Bulletins and Capacity Available (c) Nominations (d) Submit Request for Firm or Interruptible Service (e) Interruptible Transportation Queue (f) Tariffs and Rates (g) Account Status of Shipper (h) Marketing Affiliate Information (i) Offers to Purchase Capacity (j) Procedures for Filing Complaints (k) E-mail to Other Shippers/PGT System Administrator (l) EBB Mailbox (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13,1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 133 First Revised Volume No. 1-A Superseding Original Sheet No. 133 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 34. ELECTRONIC BULLETIN BOARD (Continued) 34.2 Menu of Services and Information (Continued) (a) Capacity Release The capacity release menu would allow the following options: (1) Review Available Released Parcels (2) Submit/Check Status of Request for Authority to\ Bid/Release Capacity (3) Post/Withdraw Capacity for Release (4) Submit/Withdraw Bid for Released Capacity (5) Review the Status of Shipper's Active Bids (6) Review the Status of Shipper's Active Released Parcels (7) Review Shipper's Authority to Bid for Released Capacity (8) Review Transaction Log of Previous Releases (b) Bulletins and Capacity Available The bulletins and capacity available menu would allow the following options: Capacity Availability Information: (1) At Receipt Points (2) At Major Delivery Points (3) At Minor Delivery Points (4) Projected Capacity (5) PGT Maintenance Schedules (6) Whether the Capacity is Available From PGT or Through PGT's Capacity Release Program (7) Operational Bulletins (8) Regulatory Bulletins (c) Nominations (1) Submit Nominations to PGT Gas Control (2) Review Confirmation (3) E-mail to Gas Control (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13,1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 134 First Revised Volume No. 1-A Superseding Original Sheet No. 134 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 34. ELECTRONIC BULLETIN BOARD (Continued) 34.2 Menu of Services and Information (Continued) (d) Submit Request for Firm or Interruptible Service (e) Interruptible Transportation Queue (f) Tariffs and Rates The tariffs and rates menu would allow the following options: (1) Transportation Rates (2) Transportation Rate Discounts (including negotiated ITS-1 rates) (3) First Revised Volume No. 1-A - Tariff (4) Second Revised Volume No. 1 - Tariff (g) Account Status of Shippers (h) Marketing Affiliate Information The marketing affiliate information would allow the following options: (1) Transportation request data (2) Receipt/delivery point data (3) Delivery point discount data (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13,1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 135 First Revised Volume No. 1-A Superseding Original Sheet No. 135 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 34. ELECTRONIC BULLETIN BOARD (Continued) 34.2 Menu of Services and Information (Continued) (i) Offers to Purchase Capacity PGT shall post the following information on offers to purchase capacity: (1) Legal Name of Offerer (2) Name, telephone Number, Fax Number, Address of Contact Person and Alternate Contact Person (3) Firm or Interruptible Service Requested (4) Amount of Capacity Sought (5) Term Sought (6) Other Information (j) Procedures for Filing Complaints The Procedures for filing complaints menu offers the following options: (1) Review Complaint Procedure (2) Enter a Complaint (3) Send E-Mail to PGT System Administrator (k) E-Mail to other Shippers/PGT Systems Administrator (l) EBB Mailbox (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: AUGUST 13, 1996 Effective: SEPTEMBER 13,1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 136 First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 34. ELECTRONIC BULLETIN BOARD (Continued) 34.3 Historical Information PGT will back up daily transaction information on the EBB. This historical information shall be kept for a three-year period and may be archived off-line. Information that may be accessed includes Parcel information and bid information associated with that Parcel, including the identity of the winning bid and bidder. PGT will provide access to historical data in one of the following manners: (a) Direct access by parties via the EBB. In such cases, data may be viewed, down loaded to a computer or printed by the party. (b) PGT may elect to archive historical data off-line. Parties may access this data by sending a written or an electronic mail request to the PGT Capacity Release System Administrator requesting such historical data. PGT will make such information available to Shippers. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: AUGUST 02, 1993 Effective: NOVEMBER 01, 1993 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RS92-46-000, et al., dated JULY 12, 1993 Pacific Gas Transmission Company FERC Gas Tariff Second Revised Sheet No. 137 First Revised Volume No. 1-A Superseding First Revised Sheet No. 137 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 35. Reserved (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: SEPTEMBER 11, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 138 First Revised Volume No. 1-A Superseding Original Sheet No. 138 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) Reserved for future use. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: SEPTEMBER 11, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 138A First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 35A. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS (1) Interruptible Transportation Revenue Credits on Coyote Springs Extension (a) Applicability. Revenue credits from interruptible transportation revenues received by PGT from Rate Schedule ITS-1 (E-3) Shippers shall be provided to PGT's firm Shippers under Rate Schedules FTS-1 (E-3) ("Eligible Shippers"), excluding Shippers receiving service under a Capacity Release Service Agreement. (b) Crediting Percentage. PGT shall credit to Eligible Shippers 90 percent of interruptible transportation revenues received during each 12-month period, commencing November 1st of each year, but only to the extent that such transportation revenues exceed the amount of fixed costs which were allocated to interruptible transportation (Cost Allocation Amount) by PGT as part of designing PGT's effective transportation rates during such 12-month period. To the extent that PGT is required to provide interruptible transportation revenue credits during any period during which this Paragraph 35A shall be or shall have been in effect for less than 12 months, a "Short Period", PGT shall pro rate the Cost Allocation Amount by the number of days during such Short Period as compared to the total number of days in such 12 months. To calculate the interruptible transportation revenue credit due under the provisions of this paragraph, where applicable, such pro rated Cost Allocation Amount shall be compared to PGT's actual interruptible revenues for the Short Period. (c) Timing of Credits. Within 45 days after November 1st of each 12-month period or after the end of a Short Period, if applicable, PGT shall determine the total amount of the applicable Rate Schedule ITS-1 (E-3) revenues received during the 12-month period or Short Period and the distribution of the interruptible revenue credits due to Eligible Shippers as described below. Such revenue credits shall be reflected as a credit billing adjustment in the next invoices rendered to the Eligible Shippers. In the event that such credit billing adjustment would result in a credit total invoice to any Shipper, PGT will refund the excess credit billing adjustment to the Shipper in cash within 15 days after determination of the amount of the credit due to the Shipper. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 29, 1995 Effective: NOVEMBER 01, 1995 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 138B First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 35A. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS (Continued) (1) Interruptible Transportation Revenue Credits on Coyote Springs Extension (Continued) (d) Exclusion. Revenue credits shall not be awarded for that portion of interruptible revenues that are attributable to: (1) the recovery by PGT of variable costs, which portion shall be equal to the minimum usage charge for Rate Schedule ITS-1 (E-3), (2) the recovery of Gas Supply Restructuring (GSR) costs to be recovered by a GSR volumetric surcharge under Rate Schedule ITS-1 (E-3), and (3) relate to other volumetric surcharges such as GRI and ACA. (e) Distribution Method. Interruptible transportation revenue credits shall be credited to each Eligible Shipper on a pro rata basis in proportion to the reservation revenues received during the 12-month period or Short Period from each Eligible Shipper divided by the total reservation revenue for each Eligible Shipper received during such period. The reservation revenues shall include the reservation charges which the Eligible Shippers actually pay prior to the distribution of all revenue credits, and including reservation charges applicable to capacity which was released into PGT's Capacity Release Programs during the 12-month period year or Short Period by the Eligible Shipper. (f) PGT shall pay interest to Eligible Shippers on any revenue credits from the date such credits accrue. Such interest shall be calculated based upon the rate of interest specified in Section 154.67(c) of the Commission's regulations. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 29, 1995 Effective: NOVEMBER 01, 1995 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 138C First Revised Volume No. 1-A ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 35A. CREDITING OF INTERRUPTIBLE TRANSPORTATION REVENUES ON EXTENSIONS (Continued) (2) Interruptible Transportation Revenue Credits on Medford Extension (a) Applicability. Revenue credits from interruptible transportation revenues received by PGT from Rate Schedule ITS-1 (E-1) Shippers shall be credited to the deferred account for Washington Water Power Company's WP Natural Gas subsidiary in accordance with the mechanism approved by Order of June 1, 1995, 71 FERC Paragraph 61,268. (b) Crediting Percentage. PGT shall credit to the deferred account 90 percent of interruptible transportation revenues received during each 12- month period, commencing November 1st of each year, but only to the extent that such transportation revenues exceed the amount of fixed costs which were allocated to interruptible transportation (Cost Allocation Amount) by PGT as part of designing PGT's effective transportation rates during such 12-month period. To the extent that PGT is required to provide interruptible transportation revenue credits during any period during which this Paragraph 35A shall be or shall have been in effect for less than 12 months, a "Short Period", PGT shall pro rate the Cost Allocation Amount by the number of days during such Short Period as compared to the total number of days in such 12 months. To calculate the interruptible transportation revenue credit due under the provisions of this paragraph, where applicable, such pro rated Cost Allocation Amount shall be compared to PGT's actual interruptible revenues for the Short Period. (c) Exclusion. Revenue credits shall not be awarded for that portion of interruptible revenues that are attributable to the recovery by PGT of variable costs, which portion shall be equal to the minimum usage charge for Rate Schedule ITS-1 (E-1). (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 29, 1995 Effective: NOVEMBER 01, 1995 Pacific Gas Transmission Company FERC Gas Tariff 2nd Sub. First Revised Sheet No. 139 First Revised Volume No. 1-A Superseding Original Sheet No. 139 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 36. DISCOUNT POLICY PGT may from time to time offer a discount from the maximum applicable rate for service under any service agreement governed by this FERC Gas Tariff. If and when PGT offers a discount, such discount shall first be applied to the GRI Surcharge and last to the base tariff rate. PGT shall not discount its GSR Surcharge. ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 26, 1996 Effective: SEPTEMBER 13, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RM95-3, 76-61,300, dated SEPTEMBER 28, 1995 Pacific Gas Transmission Company FERC Gas Tariff Original Sheet No. 140 First Revised Volume No. 1-A ________________________________________________________________________________ GENERAL TERMS AND CONDITIONS (Continued) 37. ADJUSTMENT MECHANISM FOR FUEL, LINE LOSS, AND OTHER UNACCOUNTED FOR GAS PERCENTAGES The effective fuel and line loss percentages under Rate Schedules FTS-1 and ITS-1 shall be adjusted downward to reflect reductions and may be adjusted upward to reflect increases in fuel usage and line loss in accordance with this Section 37. 37.1 Computation of Effective Fuel and Line Loss Percentage The effective fuel and line loss percentage shall be the sum of the current fuel and line loss percentage and the fuel and line loss surcharge percentage. 37.2 The Current Fuel and Line Loss Percentage (a) For each month, the current fuel and line loss percentage shall be determined in accordance with Section 37.2(c) hereof. The current fuel and line loss shall be effective from the first day of such month and shall remain in effect for the month. (b) The current fuel and line loss percentage to be applicable for the month shall be posted on PGT's Electronic Bulletin Board not less than seven (7) days prior to the beginning of the month. (c) The current fuel and line loss percentage for the month shall be determined on the basis of (1) the estimated quantities of gas to be delivered by PGT for the account of Shippers during such month and (ii) the projected quantities of gas that shall be required for fuel and line loss during such month, adjusted for overrecoveries or underrecoveries of fuel and line loss during such month preceding the month in which the current fuel and line loss percentage is posted; provided, that the percentage shall not exceed the maximum current fuel and line loss percentage and shall not be less than the minimum current fuel and line loss percentage set forth on the Statement of Effective Rates and Charges. (Continued) ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: DECEMBER 22, 1993 Effective: JANUARY 22, 1994 Pacific Gas Transmission Company FERC Gas Tariff Substitute Original Sheet No. 141 First Revised Volume No. 1-A Superseding Original Sheet No. 141 ________________________________________________________________________________ GENERAL TERMS AND CONDITIONS (Continued) 37. ADJUSTMENT MECHANISM FOR FUEL, LINE LOSS AND OTHER UNACCOUNTED FOR GAS PERCENTAGES (Continued) 37.2 The Current Fuel and Line Loss Percentage (Continued) (d) At least thirty (30) days prior to July 1 and January 1, PGT shall file with the Commission schedules supporting the current fuel and line loss percentages applicable during the six (6) months ending April 30 and October 31, respectively. 37.3 The Fuel and Line Loss Surcharge Percentage (a) For each six (6) month period beginning July 1 and January 1, the fuel and line loss surcharge percentage shall be determined in accordance with Section 37.3(c) hereof. The fuel and line loss surcharge percentage shall become effective on July 1 and January 1 and shall remain in effect for the six (6) month period ending December 31 and June 30, respectively. (b) At least thirty (30) days prior to each July 1 and January 1, PGT shall file with the Commission and post, as defined by Section 154.16 of the Commission's regulations, the fuel and line loss surcharge percentage, together with supporting documentation. (c) The fuel and line loss percentage shall be computed by (i) determining PGT's actual fuel and line loss for the six (6) month period ending April 30, if the effective date is July 1, or October 31, if the effective date is January 1, (ii) subtracting the actual quantities retained by PGT during such six (6) month period, and (iii) dividing the result by the estimated quantities of gas to be delivered by PGT for the account of Shippers during the six month period beginning with the effective date of the fuel and line loss surcharge percentage. If the percentage so determined is 0.0001% or less, the fuel and line loss surcharge percentage shall be deemed to be zero. ________________________________________________________________________________ Issued by: P.G. Rosput, Senior Vice President Issued on: JANUARY 10, 1994 Effective: JANUARY 22, 1994 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. TM94-2-86-000, dated DECEMBER 30, 1993 Pacific Gas Transmission Company FERC Gas Tariff First Revised Sheet No. 142 First Revised Volume No. 1-A Superseding Original Sheet No. 142 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 38. Reserved. (Continued) ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: SEPTEMBER 11, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Pacific Gas Transmission Company FERC Gas Tariff Third Revised Sheet No. 143 First Revised Volume No. 1-A Superseding Second Revised Sheet No. 143 ________________________________________________________________________________ TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued) 39. SALES OF EXCESS GAS PGT may from time to time purchase or sell gas on an interruptible basis at its Stanfield or Kingsgate receipt points as necessary to manage system pressure and maintain system integrity. Prior to purchasing or selling gas pursuant to this section, PGT shall post notice of its intent to purchase or sell gas through its EBB. Purchase or sale of gas shall be made on a nondiscriminatory basis. ________________________________________________________________________________ Issued by: R.T. Howard, Manager, Rates and Regulatory Affairs Issued on: SEPTEMBER 30, 1996 Effective: SEPTEMBER 11, 1996 Issued to comply with order of the Federal Energy Regulatory Commission, Docket No. RP94-149, 76-61,246, dated SEPTEMBER 11, 1996 Graphic List to Exhibit 10.1 of the Form 10-K The substantive information conveyed by the Capacity Release Timelines Standard Release (Greater Than or Equal to One Day) graph (appearing in Paragraph 28) is described in the body of the electronic document at Paragraph 28.2 and Paragraph 28.8 (b) as permitted by Item 304 of Regulation S-T. The substantive information conveyed by the Capacity Release Timelines Rapid Release (Equal to or Less Than One Month) graph (appearing in Paragraph 28) is described in the body of the electronic document at Paragraph 28.2 and Paragraph 28.8 (a) as permitted by Item 304 of Regulation S-T. The substantive information conveyed by the Capacity Release Timelines Pre- Arranged Deal - A (Less Than or Equal to Thirty-One Days) graph (appearing in Paragraph 28) is described in the body of the electronic document at Paragraph 28.2 and Paragraph 28.8 (c) as permitted by Item 204 of Regulation S-T. The substantive information conveyed by the Capacity Release Timelines Pre- Arranged Deal - B (Equal To or Greater Than Thirty-One Days At the Highest Value Bid) graph (appearing at Paragraph 28) is described in the body of the electronic document at Paragraph 28.2 and Paragraph 28.8 (d) as permitted by Item 304 of Regulation S-T. The substantive information conveyed by the Capacity Release Timelines Pre- Arranged Deal - C (Greater Than or Equal to One Day) graph (appearing at Paragraph 28) is described in the body of the electronic document at Paragraph 28.2 and Paragraph 28.8 (e) as permitted by Item 304 of Regulation S-T.