Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

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

First Revised Sheet No. 186 First Revised Sheet No. 186 : Effective

Superseding: Original Sheet No. 186

GENERAL TERMS AND CONDITIONS

(continued)

33. Capacity Segmenting

Transporter's currently effective rate and fuel charges set forth on the Rate Sheets establish the

available capacity segments on Transporter's system. Shippers may contract for one or more of these

segments on a single contract or may elect to contract for each segment on a separate agreement. A

Shipper's election to contract for segments on separate agreements need not be made until after the

capacity is awarded and will not effect the valuation of a Shipper's bid in any bid evaluation process

set forth in Section 24. A Shipper that separately contracts for capacity segments may release

capacity segments pursuant to the provisions of Section 30.

Nothing herein prevents a Shipper from nominating capacity segments with a backhaul and a forwardhaul

to the same delivery point at the same time where such backhaul transactions can be performed by

displacement, and provided further that such nominations are subject to the scheduling priorities set

forth in Section 22 and the rate provisions set forth in Section 3.1 of the FTS-1 Rate Schedule.

A Shipper may at any time and at the Shipper's option, aggregate or disaggregate capacity segments

through contract amendments. A Shipper's election to segment an existing agreement into multiple

agreements will not alter a Shipper's total contractual rate or any revenue obligation under the

existing agreement. To the extent a contract is disaggregated into segmented contracts, Transporter

shall bill the reservation portion of Shipper's rate on the existing agreement and the usage portion

of Shipper's rates on the new capacity segment agreements.