Canyon Creek Compression Company

Third Revised Volume No. 1

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

Third Revised Sheet No. 124 Third Revised Sheet No. 124 : Effective

Superseding: Second Revised Sheet No. 124

GENERAL TERMS AND CONDITIONS

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10. DETERMINATION OF DAILY RECEIPTS

10.1 To the extent feasible, all volumes received by Canyon at a

Receipt Point shall be allocated in accordance with the confirmed

nominations for that point. In the event the actual volumes received by

Canyon do not equal the confirmed nominations for that point, any

underage or overage will be allocated as follows:

(a) First, in accordance with the effective predetermined

allocations (PDAs) submitted by those entities (Allocators) owning or

controlling the gas being delivered to Canyon. An operational balancing

agreement (OBA) is one type of a PDA. Shipper agrees that such an

allocation is binding on Shipper.

(b) Then, if there is no effective PDA, pro rata to the

extent applicable based on confirmed nominations or transfer

nominations, as applicable. Shipper agrees that such an allocation is

binding on Shipper.

10.2 The upstream or downstream party providing the point

confirmation should submit the PDA to the allocating party after or

during confirmation and before the start of the gas Day, except that no

other PDAs need be submitted if an OBA is in effect at a point. Unless

otherwise agreed, all PDAs must be submitted to Canyon through its

Interactive Website or through EDI before the start of the gas Day the

PDA is to be effective. Such PDA shall specify how any underage or

overage from the confirmed nominated volumes should be allocated among

the entities listed on the PDA. Canyon shall acknowledge receipt and

acceptance of the PDA via its Interactive Website if received through

its Interactive Website or via EDI if received via EDI. Such

notification of acknowledgment and acceptance will be within fifteen

(15) minutes of receipt. Canyon's acceptance is contingent on Canyon

being able to administer the allocation submitted by the Allocator.

Allocation methodology types upon which two parties may agree are:

ranked, pro rata, percentages, swing and operator provided value.

Other examples of allocation methods which can be used are matching of

supply sources with specified customers and combinations of methodology

types. Different methods may be submitted for overages and underages.

If the parties cannot agree, Section 10.1(b) shall apply.