Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

Effective Date: 09/01/2007, Docket: CP06-354-002, Status: Effective

Original Sheet No. 63 Original Sheet No. 63 : Effective

RATE SCHEDULE PALS

8. MANDATORY BALANCING (Contd.)

8.4 (Contd.)

C. The tariff provisions of this Section 8.4 will be

implemented by Transporter on a non-discriminatory basis.

In each instance when an amount is collected pursuant to

Section 8.4.B due to failure of Shipper to redeliver,

Transporter shall have the right to review the

circumstances surrounding such failure to redeliver and, in

its judgment, may waive all or a portion of the amount

collected in excess of 100% of the highest daily price.

Any such waiver shall be granted on a non-discriminatory

basis to all Shippers from whom amounts were collected in

that instance. Such waiver, if granted, shall be posted on

Transporter's Interactive Website, as required by

applicable FERC rules and regulations.

8.5 A. In circumstances where Shipper is unable to eliminate its

PALS RO Balance because Transporter is unable to accept the

PALS RO Nomination, Shipper shall take any action to reduce

the Balance which Transporter can accommodate and Shipper

shall be granted additional time to eliminate its PALS RO

Balance corresponding to the time Transporter was unable to

accept the PALS RO Nomination. Shipper shall not incur any

penalty as to that portion of the Balance resulting from

Transporter's inability to accept the PALS RO Nomination.

Such extension shall only apply in instances where a

Shipper's inability to eliminate the PALS RO Balance is

attributable to Transporter's inability to accept and

confirm PALS RO Nominations. Shipper remains responsible

to nominate the appropriate level of transportation to meet

Transporter's notification requirements.

B. To the extent that Shipper's allocated and delivered volume

is more or less than the nominated and confirmed volume,

Transporter shall notify Shipper no later than ten (10)

Business Days after the end of the Month following the end

date of the PALS RO. Shipper shall be afforded three (3)

Business Days after the notice to make up the volume

deficiency either through removal or by providing Gas in

kind, without penalty or daily fees. Unless otherwise

agreed by Transporter, any volume not removed or repaid in

kind shall be subject to the provisions of Section 8.4.