Caprock Pipeline Company

First Revised Volume No. 1

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Effective Date: 11/02/1998, Docket: RP99- 71-001, Status: Effective

Substitute First Revised Sheet No. 38A Substitute First Revised Sheet No. 38A : Effective

Superseding: First Revised Sheet No. 38A

GENERAL TERMS AND CONDITIONS, continued

(ii) With respect to the processing of requests for increases during

the intra-day nomination/confirmation process, in the absence of

agreement to the contrary, the lesser of the confirmation

quantities will be the new confirmed quantity. If there is no

response to a Request For Confirmation or an unsolicited

Confirmation Response, the previously scheduled quantity will be

the new confirmed quantity.

(iii) With respect to the processing of requests for decreases during

the intra-day nomination/confirmation process, in the absence of

agreement to the contrary, the lesser of the confirmation

quantities will be the new confirmed quantity, but in any event

no less than the elapsed-prorated-scheduled quantity. If there

is no response to a Request For Confirmation or an unsolicited

Confirmation Response, the greater of the confirmation quantity

or the elapsed-prorated-scheduled quantity will be the new

confirmed quantity. Elapsed-prorated-scheduled quantity means

that portion of the scheduled quantity that would have

theoretically flowed up to the effective time of the intra-day

nomination being confirmed, based upon a cumulative uniform

hourly quantity for each nomination period affected.

(iv) With respect to 16.3 (a) (i), (ii), and (iii), if there is no

response to a request for confirmation or an unsolicited

confirmation response, the Transportation Service Provider will

provide the Service Requester with the following information to

explain why the nomination failed, as applicable:

(1) the Service Requester’s Transportation Service

Provider did not conduct the confirmation:

(2) the Service Requester is told by its Transportation

Service Provider that the upstream confirming party

did not conduct the confirmation;

(3) the Service Requester is told by its Transportation

Service Provider that the upstream Service Requester

did not have the gas or submit the nomination;

(4) the Service Requester is told by its Transportation

Service Provider that the downstream confirming party

did not conduct the confirmation;

(5) the Service Requester is told by its Transportation

Service Provider that the downstream Service

Requester did not have the market or submit the

nomination.

This information will be imparted to the Service Requester on the

Scheduled Quantity document.