Western Gas Interstate Company

Third Revised Volume No. 1

Effective Date: 06/01/1993, Docket: RS92- 53-003, Status: Effective

Revised Original Sheet No. 281 Revised Original Sheet No. 281 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(b) Daily Balancing Charges - If on any day Shipper

delivers to Western at the Receipt Point(s) quantities

which are in excess of ("Positive Imbalance") or

deficient by ("Negative Imbalance")the greater of 50

MMBTU or 10 percent of the transportation quantities

taken by Shipper at the Delivery Points, as adjusted

for Retention Quantities, Shipper shall have forty

eight hours after notification by Western, or such

other period of time as reasonably required by Western

to protect the integrity of its system, to initiate

corrective action mutually agreed upon by Shipper's

and Western's gas dispatchers, at each affected

Receipt Point and Delivery Point. In the event

Shipper fails to initiate the corrective action

mutually agreed upon by Shipper's and Western's gas

dispatchers within the period agreed upon, Western

shall charge Shipper a Daily Imbalance Charge of $0.10

per day per MMBTU of Positive Imbalance or Negative

Imbalance, for each day as long as the Positive

Imbalance or Negative Imbalance exists, until Shipper

brings its cumulative imbalance within the 10 percent

tolerance level.

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. 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 MMBTU per