Colorado Interstate Gas Company

First Revised Volume No. 1

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

Third Revised Sheet No. 380G Third Revised Sheet No. 380G

Superseding: Second Revised Sheet No. 380G

GENERAL TERMS AND CONDITIONS

(Continued)

16.3 The following provisions apply to Rate Schedule TSB-Y

(a) If Transporter, on any Day, fails to daily Deliver quantities

then, subject to Sections 16.3(b) and (c) below, the R1

reservation charge and any attendant surcharges for the Month

in which such Day occurs will be reduced by an amount equal to

the product of (a) the quantity of Gas Transporter failed to

Deliver (such quantity, in neither case, to exceed Shipper's

MDQ limited by Shipper's YADWQ) times (b) the rate per Dth

equal to the quotient of the applicable R1 Rate divided by the

number of days in such Month, rounded to the nearest tenth of

a cent.

(b) Amounts determined pursuant to Section 16.3(a) shall be

credited against Transportation charges for a future Month or

refunded if the Agreement has terminated. In no event shall

such credit be provided to Shipper later than 90 days after

the month in which the credit was earned. Such crediting shall

be Shipper's sole and exclusive remedy for Transporter's

failure as described herein unless damages incurred by Shipper

are shown to be the result of negligence or willful misconduct

by Transporter. If a court makes such a finding, then

Transporter shall only be liable for its proportionate amount

of negligence.

provided for in Section 16.3(a) if Transporter's failure to

transport Gas from Shipper or Transporter's failure to

transport Gas accepted for Transportation is due to Shipper's

failure to perform in accordance with the terms of the

Agreement, including, but not limited to, the Joint Monthly

Operating Plan and Operational Flow Orders.