Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

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

Original Sheet No. 271 Original Sheet No. 271 : Effective

GENERAL TERMS AND CONDITIONS

36. OPERATIONAL PARAMETERS (Contd.)

36.9 REFUND OF PENALTY AMOUNTS

The amounts collected as penalties by Transporter for each

Directional Notice or Critical Time Operational Flow Order shall

be refunded through an event-by-event calculation in the annual

reconciliation filing as referenced in Section 37 of these General

Terms and Conditions and as follows:

A. First, the amounts collected will be used to compensate

Transporter for any costs it has incurred (including any

compensation Transporter agreed to provide for voluntary

actions) to alleviate the conditions which resulted in the

issuance of the Directional Notice or in declaration of the

Critical Time Operational Flow Order.

B. Then, any remaining amounts will be refunded to all

Complying Shippers and other Shippers that did not incur

Directional Notice or Critical Time Operational Flow Order

penalties based on the method described in Section 37 of

these General Terms and Conditions.

C. In each instance when amounts are collected as penalties for

a Directional Notice or Critical Time Operational Flow

Order, Transporter shall have the right to review the

circumstances surrounding each penalty incurrence and, in

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

collected in excess of 100% of the Monthly Index Price. Any

such waiver shall be granted on a non-discriminatory basis

to all Shippers from whom penalties 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.

36.10 STANDARDS

A. In issuing Directional Notices, Critical Time Operational

Flow Orders or taking other operational control action under

this section, Transporter shall apply consistent and

objective engineering and operational criteria to define the

overall operational integrity of the System and acceptable

pressure levels to be maintained, to evaluate the imminent

nature of any threat to these factors, and to determine what

steps are necessary to preserve such factors. Such criteria

may be changed from time-to-time as operating experience

indicates.