Canyon Creek Compression Company

Third Revised Volume No. 1

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

Original Sheet No. 120 Original Sheet No. 120 : Effective

GENERAL TERMS AND CONDITIONS

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8. NEW FACILITIES CHARGE

8.1 Canyon shall not be obligated to construct, acquire,

modify or expand any facilities for service under this Rate

Schedule. When new and/or expanded facilities are required to

accommodate receipt and/or delivery of gas and Canyon determines at

its sole discretion to install such facilities in order to render

service pursuant to this Rate Schedule, Shipper shall pay all

construction costs, including any filing fees and any gross-up for

income taxes, associated with such facilities unless Canyon agrees

otherwise.

8.2 Notwithstanding the provisions under Section 8.1 hereof,

if Canyon constructs, acquires or modifies any facilities to perform

service hereunder, then either:

(a) Shipper shall reimburse Canyon for the costs of

such facilities; or

(b) Canyon shall assess a monthly charge, based on the

cost of service reflecting such facilities costs; whichever option

is specified in the agreement concerning the building of the

facilities.

8.3 To the extent Shipper is required to build facilities to

interconnect with Canyon's System, such facilities shall be in

conformance with the U.S. Department of Transportation Regulations

and shall be subject to inspection and prior approval by Canyon.