Colorado Interstate Gas Company

First Revised Volume No. 1

Effective Date: 03/01/2008, Docket: RP07-666-002, Status: Pending

Fifth Revised Sheet No. 378 Fifth Revised Sheet No. 378 : Pending

Superseding: 2nd Sub Fourth Revised Sheet No. 378

GENERAL TERMS AND CONDITIONS

(Continued)

ARTICLE 36 - NONDISCRIMINATORY WAIVER OF TARIFF PROVISIONS AND NONWAIVER OF

FUTURE DEFAULTS

36.1 Transporter may waive any of its rights under this Tariff or any

obligations of Shippers under this Tariff for good cause and on a

basis which is not unduly discriminatory. No waiver shall operate

or be construed as a waiver of future rights or obligations, whether

of a like or different character.

ARTICLE 37 - OPERATIONAL PURCHASES AND SALES

37.1 Transporter may buy and/or sell gas to the extent necessary: (i) to

maintain system pressure and line pack; (ii) to manage system storage;

(iii) to balance fuel quantities; (iv) to implement the cash out of

imbalances procedures contained in Section 7.11 of the General Terms and

Conditions of the Tariff; (v) to implement the gas retention requirements

of Rate Schedules NNT-1, NNT-2, FS-1, PAL-1, IS-1, HUB-1, SS-1 and APAL-1

contained in the Tariff; (vi) to maintain system balance due to plant

shrinkage from liquids extraction; and (vii) to perform other operational

functions of Transporter in connection with transportation, storage and

other similar services.

37.2 Transporter will post its operational sales quantities for bidding

on its electronic bulletin board in accordance with the applicable

bidding provisions contained in Article 2 of the General Terms and

Conditions of this Tariff.

37.3 Transporter will file a report indicating the source of the

operational gas purchased/sold, the date of such purchases/sales,

volumes, the purchase/sale price, the costs and revenues from such

purchases/sales and the disposition of the associated costs and

revenues for all types of operational purchases and sales. Such

report shall also include an explanation of the purpose of any

operational purchases/sales as well as a reconciliation and

accounting of operational purchases/sales that are associated with

Section 1.30 (Fuel), Sections 7.11 (Cash Out) and 7.12 (Scheduled

Imbalance Penalty), Section 33.4 (Revenue Crediting), and as

applicable, system balancing and service flexibility. Transporter

will file such report in conjunction with its annual Fuel Gas and

Lost, Unaccounted-For and Other Fuel Gas True-Up filing pursuant to

Article 42 of the General Terms and Conditions.