Canyon Creek Compression Company

Third Revised Volume No. 1

Effective Date: 07/23/2001, Docket: RP01-460-000, Status: Effective

First Revised Sheet No. 108 First Revised Sheet No. 108 : Effective

Superseding: Original Sheet No. 108

GENERAL TERMS AND CONDITIONS

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5. PRIORITY OF SERVICE

5.1 ALLOCATION OF CAPACITY

This Section 5.1 governs the allocation of firm

capacity on Canyon's System among entities requesting firm

services. In assigning priority to otherwise valid requests for

any particular firm service, Canyon shall afford priority based on

rate, term, and volume, applying consistent and objective economic

criteria. In applying such criteria where a Negotiated Rate or

Negotiated Rate Formula is involved, the value assigned to a

request which includes a Negotiated Rate or Negotiated Rate

Formula shall be limited by the Recourse Rate as provided in

Section 35 of these General Terms and Conditions. Requests with

the same rate, term, and volume for the same type of firm service

shall be assigned priority on a first come, first served basis.

In the event valid requests for the same type of firm service are

received on the same day and there is insufficient capacity to

serve all such Shippers, Canyon shall allocate the available

capacity on a pro rata basis based on each Shipper's requested

MDQ. Canyon shall not be required to grant otherwise valid

requests at less than the applicable maximum rate, but may do so

on a non-discriminatory basis.

5.2 SCHEDULING OF FIRM SERVICES

(a) While firm services are not ordinarily

interrupted due to lack of capacity, capacity constraints may

exist from time to time or interruption of service may be

necessary for certain other reasons. Canyon may decline to

schedule and/or may curtail firm service for any of the following

reasons:

(1) If Shipper tenders gas which does not

conform to the applicable pressure or quality requirements of

these General Terms and Conditions;

(2) For reasons of Force Majeure;

(3) Due to routine repair and maintenance to be

reasonably determined by Canyon;