  We present models for the X-ray spectrum of the Seyfert 2 galaxy NGC 1068.
These are fitted to data obtained using the High Energy Transmission Grating
(HETG) on the Chandra X-ray observatory. The data show line and radiative
recombination continuum (RRC) emission from a broad range of ions and elements.
The models explore the importance of excitation processes for these lines
including photoionization followed by recombination, radiative excitation by
absorption of continuum radiation and inner shell fluorescence. The models show
that the relative importance of these processes depends on the conditions in
the emitting gas, and that no single emitting component can fit the entire
spectrum. In particular, the relative importance of radiative excitation and
photoionization/recombination differs according to the element and ion stage
emitting the line. This in turn implies a diversity of values for the
ionization parameter of the various components of gas responsible for the
emission, ranging from log(xi)=1 -- 3. Using this, we obtain an estimate for
the total amount of gas responsible for the observed emission. The mass flux
through the region included in the HETG extraction region is approximately 0.3
Msun/yr assuming ordered flow at the speed characterizing the line widths. This
can be compared with what is known about this object from other techniques.
