Canyon Creek Compression Company

Third Revised Volume No. 1

Effective Date: 10/01/2002, Docket: RP02-418-000, Status: Effective

First Revised Sheet No. 123E First Revised Sheet No. 123E : Effective

Superseding: Original Sheet No. 123E

GENERAL TERMS AND CONDITIONS

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9.12 OPERATIONAL BALANCING

Canyon agrees that, if requested by a Shipper, it will

negotiate with an entity that operates the facilities

interconnecting with Canyon at a Receipt Point (Balance Operator)

in a good faith effort to reach an agreement to deal with

imbalances at the Receipt Points specified (which would be a form

of a Predetermined Allocation), subject to the following

conditions:

(a) Such agreement must set out a mutually agreeable

procedure for dealing, as between Canyon and Balance Operator, with

any difference between confirmed nominations and actual physical

gas flow caused by operational conditions, so that any such

discrepancy does not affect any Shipper;

(b) The Balance Operator must meet the same

creditworthiness standards as Shipper; and

previously entered into such agreement which was terminated because

of Balance Operator's failure to perform. Nothing herein is

intended to restrict Canyon's rights to terminate in accordance

with its terms any agreement entered into hereunder, including

without limitation the right to terminate for Balance Operator's

failure to perform consistent with its obligations under the

agreement.