Rockies Express Pipeline LLC (Entrega)

Second Revised Volume No. 1

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

Original Sheet No. 274 Original Sheet No. 274 : Effective

GENERAL TERMS AND CONDITIONS

37. CREDITING OF PENALTY CHARGES (Contd.)

37.1 (Contd.)

B. Transporter shall compare penalty charges and related costs,

and determine if the penalty charges were in excess of costs

(net penalty charge revenue) or if costs were in excess of

penalty charges (net penalty charge costs).

C. To the extent net penalty charge revenues are received by

Transporter, such net penalty charge revenues, if any, shall

be refunded through a direct payment or invoice credit. A

refund allocation factor for each Shipper shall be

calculated by dividing the actual revenues for each Shipper

by the total revenues during the reporting period. The

revenues used to calculate the refund allocation factor

shall be net of all applicable surcharges, including but not

limited to, ACA surcharges. The resulting refund allocation

factor shall be multiplied by the net penalty charge revenue

to determine the applicable direct payment or invoice credit

to each Shipper.

D. Any net penalty charge costs shall be rolled forward into

succeeding reporting periods until eliminated.

38. PERIODIC RATE ADJUSTMENT (PRA) - FL&U REIMBURSEMENT

38.1 PURPOSE AND APPLICABILITY

This Section 38 establishes a PRA mechanism for the purpose of

adjusting the Fuel and Lost and Unaccounted for Reimbursement

Percentages (FL&U%) as set forth on the applicable rate sheets of

this Tariff. This provision specifies the procedure to be

utilized to adjust such percentages to reflect: (a) changes in

the level of Transporter's Fuel Reimbursement per unit of relevant

service required to recover FL&U, and (b) amortization of the

Unrecovered FL&U Reimbursement Accounts provided for in Section

38.5 hereof. All amounts for Reimbursement of FL&U shall be

recovered in-kind by Transporter by applying the FL&U

Reimbursement Percentage to the volume received for

transportation.

38.2 DEFINITIONS (Applicable to this Section 38)

A. MIP. The Monthly Index Price as defined in Section 11.3C of

these General Terms and Conditions.