Colorado Interstate Gas Company

First Revised Volume No. 1

Effective Date: 02/01/2009, Docket: RP08-484-001, Status: Suspended

Substitute Sixth Revised Sheet No. 320 Substitute Sixth Revised Sheet No. 320

Superseding: Fifth Revised Sheet No. 320

GENERAL TERMS AND CONDITIONS

(Continued)

7.13 Penalties that are in excess of Transporter's costs, including any

carrying costs, that are received by Transporter pursuant to the

operation of Sections 7.11 and 7.12 shall be credited annually to

Transporter's firm and interruptible Transportation Shippers on a

pro rata basis in accordance with the quantities Transported for

each Shipper. Transporter shall calculate and credit interest on

penalties received at rates set pursuant to 18 CFR Section

154.501(d). In addition, Transporter will file a report with FERC

on or before August 31 of each year detailing the penalties assessed

for the 12 month period ending the preceding June 30.

7.14 Penalty Provisions. Shipper will only be subject to one penalty for

the same type of infraction involving any quantity of Gas in

conjunction with Transportation Service provided under the General

Terms and Conditions.

7.15 Penalty Waiver. Transporter may, in exercise of its reasonable

discretion, and on a nondiscriminatory basis, waive all or a part of

any penalty which might otherwise apply. Transporter shall maintain

a record of all waivers granted. Such record shall include the

identity of Shipper and the basis for Transporter granting the

waiver and shall be available for public inspection at Transporter's

office during normal business hours.

7.16 Critical Operating Procedures

(a) Strained Operating Condition may be issued using the

notification procedures of Section 5.3(e)(iv)(2) of this Tariff

in situations where in Transporter's judgment general system

flexibility, normally available Day to Day, cannot be afforded

to Shippers to accommodate minor variations in receipt and

Delivery quantities from Nominated levels. Examples of such

operating conditions include (1) situations when the maximum

storage withdrawal capacity is being utilized and allocated

Receipt Quantities are less than Delivery Quantities; (2) when

the maximum storage injection capacity is being utilized and

allocated Receipt Quantities are greater than Delivery

Quantities; and (3) when actual Receipt and Delivery Quantities

on a segment of the transmission system vary from Nominations

such that Transporter's capability to receive and Deliver Gas

for its Shippers is adversely affected. The issuance of a

strained operating condition requests Shippers voluntary

support in correcting their situations and does not cause the

Unauthorized Overrun Rates to increase.