Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

Effective Date: 08/01/2007, Docket: RP06-614-003, Status: Effective

Third Revised Sheet No. 39 Third Revised Sheet No. 39 : Effective

Superseding: First Revised Sheet No. 39

RATE SCHEDULE FTS-1

Firm Transportation Service

(continued)

3. RATE

The applicable rates for the purpose of computing charges under this Rate Schedule are set

forth in the currently effective Rate Sheets of this Tariff and are incorporated herein. For

all natural gas delivered to Shipper each month under this Rate Schedule, Shipper shall pay

Transporter each month the sum of the applicable Reservation Charge, Usage Charge and Overrun

Charge as set forth in Sections 3.1, 3.2, 3.3, 3.4, 3.5, and 3.6.

3.1 (a) Reservation Charge: The applicable Reservation Charge (plus any applicable surcharges)

multiplied by the Monthly Demand Billing Units or MAXDTQ related to the Primary Receipt and

Delivery Points as set forth in Shipper's currently effective applicable FTS-1 Service

Agreement, times the number of days in the billing month.

(b) Additional Reservation Charge for Alternate Point(s): If a Shipper nominates and transports

using Alternate Receipt Point(s) or Alternate Delivery Point(s) that are outside the Shipper's

Primary Path, then Shipper will pay an additional Reservation Charge, not to exceed the

maximum applicable tariff rate, as negotiated between Shipper and Transporter, applicable to

such service outside the Primary Path. Such rate will apply on a daily basis for as long as

any alternate point outside the Primary Path is utilized.

3.2 Reservation Charge Crediting:

For purposes of this Section 3.2, the following definitions shall apply:

"Planned Maintenance" shall mean preventative work to help equipment operate more efficiently,

avoid equipment malfunctions, maintain pipeline integrity, and includes, but is not limited

to, work such as inspections, calibrations, water washing, and annual compressor driver

maintenance.

"Emergency Maintenance" shall mean unanticipated or unplanned maintenance on the pipeline

system required to be performed to ensure that gas continues to flow.

A "Force Majeure" event shall be as set forth in Section 11.1 of the General Terms and

Conditions of this Tariff.

"Tariff Months" shall mean the months of December, January, February, July and August. "Non-

Tariff Months" shall mean the months of March, April, May, June, September, October and

November.

All nominated and confirmed quantities and scheduled quantities shall be less Transport Fuel,

where applicable, and shall be in accordance with Section 22 of the General Terms and

Conditions of this Tariff (up to the aggregate MAXDTQ.)

(a) Planned Maintenance in Tariff Months. Transporter shall attempt to plan maintenance of its

facilities during the Non-Tariff Months. If due to Planned Maintenance Transporter fails to

schedule the quantities of gas that have been nominated and confirmed then the Reservation

Charge shall be reduced. The reduction shall be calculated based upon the ratio of (i) the

quantities of gas that had been nominated and confirmed, but not scheduled during the month to

(ii) the total quantities of gas nominated and confirmed during the month, times (iii) the

total Reservation Charge owed Transporter for that month for such nominated and confirmed

quantities.