Canyon Creek Compression Company

Third Revised Volume No. 1

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

Fourth Revised Sheet No. 127 Fourth Revised Sheet No. 127 : Effective

Superseding: Third Revised Sheet No. 127

GENERAL TERMS AND CONDITIONS

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12. IMBALANCES

12.1 RESPONSIBILITY FOR BALANCING

In addition to delivering and receiving volumes of gas

in conformance with nominations, Shippers are responsible for

conforming their takes at Delivery Points with their deliveries to

Canyon at Receipt Points each day. Canyon has no obligation to

deliver for the account of a Shipper more volumes of gas than

Canyon has received for the account of the Shipper or to accept for

the account of the Shipper more volumes of gas than are being

delivered for the account of the Shipper on any day.

12.2 MONTHLY IMBALANCES, NETTING AND OFFSETTING

At the end of each calendar month, to the extent the

net receipts (with the appropriate deductions for Fuel Gas and

Unaccounted For Gas) do not equal the deliveries under an Agreement

on a Dth basis, the following netting and offsetting procedures

will apply:

(a) Imbalances under a Shipper's different Agreements

will then be netted together to obtain the Shipper's Total Monthly

Imbalance. The Total Monthly Imbalance will be shown with the

monthly billings sent to Shippers.

(b) To assist Shippers in arranging offsets, Canyon

will post on its Interactive Website the Total Monthly Imbalance of

any Shipper which has notified Canyon that it has elected to have

such information posted. Notification by the Shipper may be in

writing or on Canyon's Interactive Website and shall be effective

by 8:00 a.m. on the next Business Day (Central Clock Time) if the

notification is received by 11:45 a.m. on a Business Day.

Imbalance information authorized for posting through such

notification shall be posted no later than the ninth Business Day

of the month after the imbalance occurred. Shippers shall have the

ability to post and trade imbalances, and imbalance information

shall remain posted, until the seventeenth Business Day of the

month after the imbalance occurred.

by:

(1) Receiving the Request for Imbalance Trade,

(2) Receiving the Imbalance Trade Confirmation,