RATE SCHEDULE MS
                               MERCHANT SALES
   
     1.   APPLICABILITY
   
          This Rate Schedule MS shall be applicable to all firm and
     interruptible sales services rendered by Blue Lake Gas Storage Company
     ("Seller") under the blanket certificate of public convenience and
     necessity granted to Seller pursuant to 18 C.F.R. Section 284.284(a) and
     Order 636.
   
     2.   AVAILABILITY
   
          Service under this Rate Schedule shall be available, pursuant to
     the term of Sellers blanket sales certificate, to any Gas purchaser
     ("Buyer") which has executed a Sales Service Agreement with Seller.
   
     3.   SALES SERVICE AGREEMENT
   
          Sales service under this Rate Schedule shall be available only on
     the condition and to the extent that Seller and Buyer have agreed to
     such service and have executed a written Sales Service Agreement that
     contains the terms, conditions, rates and fees applicable to such
     service.  Seller shall have no obligation to provide sales service for
     any quantity of Gas in excess of that specifically agreed to in the
     Sales Service Agreement and such obligation shall be coextensive with
     the term of the agreement.  In accord with 18 C.F.R. Section 284.285,
     Seller is authorized to abandon the sales service to which the Sales
     Service Agreement relates upon termination of such Agreement without
     obtaining any additional approval of the Federal Energy Regulatory
     Commission for such abandonment.
   
     4.   TERMS, CONDITIONS, RATES AND FEES
   
          The terms, conditions, rates and fees applicable to service under
     this Rate Schedule shall be those terms, conditions, rates and fees to
     which Seller and Buyer have agreed in their Sales Service Agreement.
   
     5.   POINT OF SALE
   
          The point of sale for all Gas sold by Seller to Buyer under this
          Rate Schedule shall be (a) any point at which the Gas enters Sellers
          system, or (b) any point at which Sellers system interconnects with
          that of another pipeline.
   
     6.   TRANSPORTATION
   
          Gas purchased by Buyer from Seller under this Rate Schedule shall
     be transported pursuant to the terms of separate transportation
     agreements.