Colorado Interstate Gas Company

First Revised Volume No. 1

Effective Date: 06/01/2010, Docket: RP10-689-000, Status: Effective

Seventh Revised Sheet No. 355 Seventh Revised Sheet No. 355

Superseding: Sixth Revised Sheet No. 355

GENERAL TERMS AND CONDITIONS

(Continued)

10.5(a)(continued)

(i) Transporter shall determine the imbalance quantity

applicable to each Agreement through the last Day of the

Month.

(ii) Shippers shall have the opportunity to reduce the

end-of-month imbalances to the extent practicable

pursuant to this Section 10. Such reductions, if any,

shall determine a final imbalance for each Agreement.

(iii) Transporter and Shipper shall Cash Out by applying the

Cash Out System Index Price to the final imbalance

quantity.

(b) Determination of Cash Out Liabilities.

(i) Shipper shall not be subject to Cash Out Penalty if the

imbalance occurs at an interconnection between

Transporter's system and another interstate pipeline,

and Shipper is not at fault for the imbalance.

(ii) Imbalances for which the Shipper has not elected to be

held open for Trade shall be valued at the Cash Out

System Index Price for the Month that the imbalance

accumulated. The Cash Out System Index Price for

imbalances that were held open for Trade shall be valued

at the higher of the accumulation Month or the Trade

Month for imbalances due Transporter and the lower of

the accumulation Month or the Trade Month for imbalances

due the Shipper.

(iii) Cash Outs shall be priced at the following premium or

discount from the Cash Out System Index Price. The

imbalance percentage shall be determined by comparing

the size of the imbalance to the larger of total Receipt

or total Delivery Quantities for the Agreement under

which the imbalance is being Cashed Out. The imbalance

percentage for remaining Trade imbalances will be as

determined in the Month that the imbalance accumulated.

The appropriate Cash Out System Index Price shall be

subject to a premium for quantities owed to Transporter

and subject to a discount for quantities owed to

Shipper.