Canyon Creek Compression Company

Third Revised Volume No. 1

Effective Date: 12/01/1993, Docket: RS92- 57-003, Status: Effective

Original Sheet No. 11 Original Sheet No. 11 : Effective

RATE SCHEDULE C

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5. MINIMUM BILL

The minimum bill for each Shipper shall be the Demand

Charge.

6. CREDIT

Canyon shall provide a credit to Shippers under Rate

Schedules C and FCS equal to ninety percent (90%) of any revenue

(exclusive of revenue applicable to the ACA charge) collected by

Canyon under Rate Schedule ICS in excess of the fixed costs

allocated to interruptible compression service (ICS) in the design

of Canyon's underlying demand/reservation compression rates and an

amount equal to Canyon's FCS commodity rate times the ICS volumes

transported during the preceding year. The determination of any

such revenue credit should be made on an annual basis commencing

with the period ending November 30, 1994 and annually thereafter

until the Commission allows termination of this crediting mechanism;

provided, however, that Canyon shall not be required to begin

applying previously accrued credits to customer bills until the day

after the Commission has issued a final order applicable to rates

for any such period, it being understood that Canyon shall pay

interest at the Commission authorized rate if credits are deferred

as a result of this proviso. Any excess ICS revenues will be

reflected as a credit on the bills of individual Shippers. The

percentage of excess revenues to be allocated to each individual

Shipper will be determined pursuant to the following ratio: the

annual reservation revenues collected from each Shipper to the total

of all reservation revenues collected from all such Shippers during

the same period. Any excess revenues so determined will be passed

back to individual Shippers as a credit against their subsequent

billings until completely refunded. In no event will a Shipper's

reservation charge be reduced below zero.

7. GENERAL TERMS AND CONDITIONS

The provisions of the General Terms and Conditions of

this Tariff, as such provisions may be amended from time to time,

are hereby incorporated by reference and made a part of this Rate

Schedule C and shall apply to service rendered hereunder as though

stated herein.