Caprock Pipeline Company

First Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-139-001, Status: Effective

First Revised Sheet No. 18 First Revised Sheet No. 18 : Effective

Superseding: Original Sheet No. 18

prime commercial lending rate per annum announced by CitiBank,

N.A. from time to time, provided that for any period that such

late charge would exceed any applicable maximum rate permitted by

law, the late charge shall equal said applicable maximum rate

permitted by law. The late charge provided for by this paragraph

shall be compounded monthly. If either principal or late charges

are due, any payments thereafter received shall first be applied

to the late charges due, then to the previously outstanding

principal due and, lastly, to the most current principal due.

Subject to requirements of regulatory bodies having jurisdiction

and without prejudice to any other rights and remedies available

to Caprock under the law and the executed Agreement, Caprock

shall have the right to discontinue transportation service if any

bill remains unpaid for thirty (30) days after the due date

thereof or if Shipper breaches any of the other terms and

conditions of the executed Agreement and, for thirty (30) days

after receipt of written notice from Caprock of such other

breach, fails to remedy or correct the same; provided, however,

that in the event of a bona fide dispute between the parties in

respect of breach, or in respect of the amount due under any

bill, Caprock shall not have the right to discontinue the

transportation of gas for Shipper's account until after the

expiration of thirty (30) days from the date a final decision is

no longer subject to appeal by a court of competent jurisdiction,

unless the decision of the court has determined such dispute in

favor of Caprock and against Shipper and Shipper has failed to

remedy or correct such violation or breach of contract within

said thirty (30) day period. Transportation of gas shall be

resumed upon remedy of Shipper's breach.

8.5 Delayed Bill - If Caprock fails to mail any bill by the

ninth (9th) business day of the month then the time of payment

shall be extended by one (1) day for each day that the mailing of

said bill is delayed unless Shipper is responsible for such

delay.

8.6 Prior Period Adjustments - Prior period adjustment time

limits should be six (6) months from the date of the initial

transportation invoice and seven (7) months from the date of the

initial sales invoice, with a three (3) month rebuttal period,

excluding government required rate changes. This standard shall

not apply in the case of deliberate omission or misrepresentation

or mutual mistake of fact. Parties other statutory or contractual

rights shall not otherwise be diminished by this paragraph.

Measurement prior period adjustments shall be taken back to the

production month. A meter adjustment becomes a prior period

adjustment after the fifth business day following the business

month. Measurement data corrections should be processed within

six months of the production month with a three month rebuttal

period. This standard shall not apply in the case of deliberate

omission or misrepresentation or mutual mistake of fact. Parties

other statutory or contractual rights shall not otherwise be

diminished by this provision. Missing or late measurement data

shall be estimated on the invoice. The measuring party shall

provide the estimate. When actual data is acquired, it shall be

treated as a prior period adjustment.