Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

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

Original Sheet No. 266 Original Sheet No. 266 : Effective

GENERAL TERMS AND CONDITIONS

36. OPERATIONAL PARAMETERS (Contd.)

36.5 DIRECTIONAL NOTICE (Contd.)

G. Transporter may also issue Directional Notices as follows:

(1) In order to improve System operations, Transporter may

require any Shipper which has a variance of twenty

percent (20%) or more between actual deliveries to

Transporter at a Receipt Point and the confirmed

Nomination at that Receipt Point to conform the

deliveries to the confirmed Nomination as of the Day

that commences with the effectiveness of the

Directional Notice.

(2) (a) Transporter may also require Shippers to keep

any variances between actual flows and confirmed

Nominations at all of the Receipt Points or

Delivery Points under each Shipper's Agreements,

which are to the detriment of Transporter's

System, within a ten percent (10%) tolerance.

If a Shipper ("Swing Shipper") agrees to keep

all other Shippers at a Delivery Point whole

with their Nominations, such other Shippers'

confirmed Nominations and actual takes at that

Point will be included in the total confirmed

Nominations and the total actual deliveries of

the Swing Shipper at all Delivery Points for

purposes of determining the Swing Shipper's

variance.

(b) Shippers that fail to comply with such

Directional Notice described in this Subsection

G shall be subject to a penalty of two (2) times

the Monthly Index Price per Dth, (as determined

in Section 11.3 of these General Terms and

Conditions), applicable to the Operational

Impact Area, outside of a ten percent (10%)

tolerance, by which such Shipper deviated from

the requirements of the Directional Notice. A

Shipper shall be exempt from any penalty under

this Section 36.5G to the extent the Directional

Notice requires action beyond Shipper's contract

limits under its Service Agreement with

Transporter.