Caprock Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/01/1997, Docket: RP97-139-008, Status: Effective

Second Revised Sheet No. 10 Second Revised Sheet No. 10 : Effective

Superseding: First Revised Sheet No. 10

3.3 It is understood and agreed that Caprock shall have the

absolute and unqualified right to commingle the gas transported

hereunder, to redeliver gas different from those received, to

treat the gas delivered in any manner, and to redeliver a like

number of Dth's by displacement.

3.4 Caprock agrees to proceed with due diligence in

transporting the volumes delivered or caused to be delivered by

Shipper, and in maintaining a thermally equivalent Btu balance

between volumes delivered and redelivered hereunder.

3.5 Both parties hereto shall have the right at any and all

reasonable times to examine the books and records of the other

party to the extent necessary to verify the accuracy of any

statement, charge, computation or demand made under or pursuant to

the Agreement.

3.6 No imbalance penalty shall be imposed when a prior

period adjustment applied to the current period causes or

increases a current month penalty.

 

ARTICLE IV

MEASUREMENT AND FACILITIES

 

4.1 Facilities - The parties acknowledge that, unless

otherwise agreed, the facilities to measure the gas at the

Delivery and Redelivery Point(s) will be installed, operated, and

maintained by Caprock. All facilities placed by Caprock or its

designee on or under the property of Shipper shall be deemed to be

the personal property of Caprock or its designee, whether or not

affixed to the realty, and shall at all times be subject to the

absolute control and disposition of Caprock or its designee.

Shipper shall be solely responsible for and shall bear the full

costs of getting the gas to the Delivery Point(s) for

transportation under the Agreement.

4.2 Measuring Equipment - Caprock or its designee shall

designate the type of measuring equipment that shall be utilized

and be the operator of the measurement facilities. Shipper may

install, maintain and operate, at its sole cost and expense, check

measuring equipment; provided, however, that such equipment shall

be installed in a manner that will not interfere with the

operation of the other party's measuring equipment.

4.3 Orifice Meters - Orifice meters installed in such

measuring stations shall be constructed and operated in

accordance with American National Standard Institute

("ANSI")/American Petroleum Institute ("API") 2530, American Gas

Association ("AGA") Report No. 3, Orifice Metering of Natural Gas

and Other Related Hydrocarbon Fluids, Second Edition, dated

September 1985, and any subsequent modification and amendment

thereof, and shall include the use of flange connections and,

where necessary, straightening vanes and pulsation dampening

equipment.