Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

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

First Revised Sheet No. 160 First Revised Sheet No. 160 : Effective

Superseding: Original Sheet No. 160

GENERAL TERMS AND CONDITIONS

(continued)

27. SHIPPER IMBALANCE RESOLUTION PROVISIONS:

Although Shippers must submit balanced nominations (nominated deliveries must equal nominated

receipts less fuel), and not withstanding the fact that Transporter has OBA's at all points,

minor inadvertent Shipper imbalances can be created as a result of the simultaneous

confirmation process. A Shipper Imbalance on a Service Agreement shall be defined as a volume

variance between the Service Agreement's scheduled receipts less fuel and the Service

Agreement's scheduled deliveries which occurs when a confirming party, in the Intraday 2 Cycle,

confirms a different quantity than was submitted for confirmation.

27.1 The Shipper Imbalance shall be resolved in accordance with the provisions of Section 27.5

below.

27.2 The MIP applicable to a Shipper Imbalance shall be determined by the location(s) in which the

confirmation quantities differed. The MIP for each month shall equal the average of the daily

prices for that month as reported in Gas Daily's table entitled "Daily Price Survey" for

delivery into Transporter's mainline system for the following:

Imbalance MIP

Location Gas Daily - Daily Price Survey

********** ********************************

East of Thoreau Area "Permian Basin Area, Transwestern"

North of Blanco "New Mexico - San Juan Basin,

El Paso - Bondad"

Blanco "New Mexico - San Juan Basin,

El Paso - San Juan Basin"

West of Thoreau, "Others, SoCal Gas"

Except PG&E Topock

West of Thoreau - PG&E Topock "Others, PG&E, South"

If a range of prices is shown for any particular day, the midpoint of such range shall

represent that day's price at a particular location.

If for any reason, Gas Daily ceases to be available for a particular month, the MIP for that

month will equal the average of the applicable daily prices (excluding weekends and holidays)

for each above-described location for the applicable month as reported in any other generally

accepted available industry publication chosen by Transporter.