Canyon Creek Compression Company

Third Revised Volume No. 1

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Effective Date: 09/24/2001, Docket: RP01-515-000, Status: Effective

Second Revised Sheet No. 112 Second Revised Sheet No. 112 : Effective

Superseding: First Revised Sheet No. 112

GENERAL TERMS AND CONDITIONS

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(5) To rectify imbalances or to conform physical flows to

nominations to the extent consistent with the specific Rate Schedule;

 

(6) To maintain System integrity;

 

(7) If there is a dispute over title, ownership or right

to tender or receive gas; or

 

(8) If capacity is required to provide a service with

higher priority.

 

(c) (1) If nominations under interruptible Agreements on any

day exceed Canyon's available capacity on that day to provide such services,

Canyon shall, to the extent possible given the priorities imposed by upstream

or downstream transporters, allocate available capacity as set out in this

subsection (c) among Shippers which have executed interruptible Agreements.

 

(i) Canyon shall schedule interruptible services

(including authorized overrun) based on the rate to be paid, from highest to

lowest daily rate, with service for which the highest daily rate being paid

is scheduled first. Any Shipper paying the maximum rate applicable to its

service (or revenue equal to or greater than the applicable maximum rate

pursuant to a Negotiated Rate or Negotiated Rate Formula) shall be afforded

highest priority even if a Shipper which has agreed to a Negotiated Rate or

Negotiated Rate Formula is paying a higher unit rate.

 

(ii) In the event there is insufficient capacity to

schedule all services for which the same rate is to be paid, Canyon shall

allocate the available capacity pro rata based on the confirmed nomination

volume.

 

(2) Notwithstanding Section 5.4(c)(1) hereof, Canyon

reserves the right, after a one (1) day notice, to interrupt service to any

interruptible Shipper paying a discount rate to enable Canyon to provide

service to another Shipper if such service would result in a higher unit

rate; provided, however, that Canyon will not interrupt service to a Shipper

paying the applicable maximum rate (or revenue equal to or greater than the

applicable maximum rate pursuant to a Negotiated Rate or Negotiated Rate

Formula) even if a Shipper which has agreed to a Negotiated Rate or a rate

under a Negotiated Rate Formula would pay a higher unit rate. Within such

one (1) day period, Shipper shall be allowed to increase its rate by any

amount up to the applicable maximum rate specified in this Tariff. A

Shipper agreeing to increase its rate hereunder shall be entitled to any

higher priority associated with such higher rate; provided, however,