Western Gas Interstate Company

Fourth Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-160-001, Status: Effective

First Revised Sheet No. 233 First Revised Sheet No. 233 : Effective

Superseding: ORIGINAL SHEET NO. 233

GENERAL TERMS AND CONDITIONS

(continued)

as the Positive Imbalance or Negative Imbalance

exists, until Shipper brings its cumulative

imbalance within the 10 percent tolerance level.

Subsequent to the close of each Billing Month,

Western shall notify Shipper of its cumulative

imbalance quantity, measured as the difference

between cumulative receipts and deliveries by

Western under the transportation Service

Agreement. Imbalance statements will be generated

at the same time or prior to the generation of

the transportation invoice. If the absolute

value of the cumulative imbalance is more than

10 percent of the volumes scheduled by Western

for Shipper under the Service Agreement in the

Billing Month, then Shipper and Western's

dispatchers shall agree on appropriate corrective

action within ten days and Shipper shall bring

its cumulative imbalance within this 10 percent

limit within 45 days after such agreement.

If Shipper fails to bring its cumulative imbalance

within the 10 percent limit within the 45 day

period, then Western shall charge Shipper $0.01

per Dth per day for each Dth of cumulative

imbalance over the 10 percent limit until the

cumulative imbalance is brought within the limit.

If after 90 days any cumulative imbalance in

excess of the ten percent limit remains,

Western shall either:

(i) charge Shipper for a Negative Imbalance,

including applicable Retention Quantities,

at a rate equal to 150% of the spot market

commodity rate applicable for that Division,

as required to bring the cumulative

imbalance to within the 10 percent limit.

(ii) purchase the Positive Imbalance from Shipper,

free and clear of any adverse claims by any

party, at a rate equal to