Canyon Creek Compression Company

Third Revised Volume No. 1

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

Third Revised Sheet No. 126 Third Revised Sheet No. 126 : Effective

Superseding: Second Revised Sheet No. 126

GENERAL TERMS AND CONDITIONS

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11. DETERMINATION OF DELIVERIES

11.1 PREDETERMINED ALLOCATIONS

In accounting for the volumes delivered by Canyon, in

circumstances where multiple services are provided at any Delivery

Point, the sequence of volumes delivered shall be determined by a

predetermined allocation agreement between Canyon and the operator of

the facilities immediately downstream of the point at which Canyon

delivers gas. 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. In the

absence of such an agreement, Sections 11.2 and 11.3 shall control.

Any new or proposed change to the methodology should be sent to

Canyon before the start of the gas Day on which the methodology is to

be effective. Canyon shall confirm receipt of the methodology within

fifteen (15) minutes via its Interactive Website if received via its

Interactive Website or via EDI if received via EDI. 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 that can be used are combinations of methodology types.

Different methods may be submitted for overages and underages.

11.2 DELIVERY SEQUENCE

Unless otherwise agreed, gas at any Delivery Point shall

be deemed to have been delivered in the following sequence:

(a) Volumes scheduled under firm transportation

Agreements consistent with confirmed nominations and within MDQ;

(b) Volumes scheduled under interruptible transportation

Agreements consistent with confirmed nominations and within MDQ; and

nominations.

(d) Additional volumes shall be allocated pro rata based

on confirmed nominations, but not to exceed the applicable MDQ, among

ICS Agreements under which Shippers nominated that day; and

(e) Any remaining volumes shall be allocated as

Unauthorized Overrun Gas pro rata based on confirmed nominations

among ICS Agreements under which Shippers nominated that day.