Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

Effective Date: 10/23/2006, Docket: RP06-604-000, Status: Effective

First Revised Sheet No. 155 First Revised Sheet No. 155 : Effective

Superseding: Original Sheet No. 155

GENERAL TERMS AND CONDITIONS

(Continued)

c) For the purpose of calculating the Allocation Factor in Section 25

(D)(1)(a), the MAXDTQ for each Current Firm Shipper shall be

determined in accordance with the following:

i) For TCR II filings made prior to November 1, 1996, the MAXDTQ will

be equal to the Current Firm Shipper's MAXDTQ as of the date of

such filing; or

ii) For TCR II filings made on or after November 1, 1996, the MAXDTQ

will be equal to the Current Firm Shipper's MAXDTQ as of

November 1, 1996.

d) The calculation of the Allocation Factor in Section 25(D)(1)(a)

shall also include the MAXDTQs for previously held capacity

("Previously Held Capacity") as follows: (1) for Aquila Energy

Marketing Company, 14,600 dth/day, (2) for Robert L. Bayless,

3,000 dth/day, (3) for Signal Fuels Trading Corp., 5,000 dth/day,

and (4) for Sunrise Energy Company, 50,000 dth/day.

2) The Allocation Factor will be multiplied by the TCR II Amounts to

derive the amount applicable to each Current Firm Shipper. To calculate

the TCR II Reservation Surcharge for each Current Firm Shipper, the

amount applicable to each Current Firm Shipper will be divided by the

sum of the Current Firm Shipper's MAXDTQ (in accordance with Section 25

(D)(1)(c)(i) or (ii) as applicable) for the West of Thoreau area times

the number of days in the Amortization Period.

3) Transporter will adjust the TCR II Reservation Surcharge prospectively

to include additional take-or-pay costs as they are paid by

Transporter and made effective as provided in FERC's order accepting

Transporter's filing to collect such costs.

E. Amortization Period: The Amortization Period for TCR II Amounts shall be

ten years, commencing with the effective date of each filing made by

Transporter to collect such TCR II Amounts. Each such filing shall begin

a new ten-year Amortization Period for the costs included in that filing.

F. Transporter shall assume the risk of collection for any allocated TCR II

Surcharges not paid by any Current Firm Shippers listed above subject to

Transporter's collection rights under Section 7 of these General Terms

and Conditions.

G. Transition costs: Transition Costs shall include Commission authorized

amounts that Transporter has paid or has been obligated by agreement to pay

to producers/suppliers in settlement of take or pay or other quantity

provisions in gas purchase contracts or to reform uneconomic contract terms

in such contracts (including without limitation, quantity, price, volume,

or contract duration).