Canyon Creek Compression Company

Third Revised Volume No. 1

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

Third Revised Sheet No. 140 Third Revised Sheet No. 140 : Effective

Superseding: Second Revised Sheet No. 140

GENERAL TERMS AND CONDITIONS

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16. CAPACITY RELEASE BY FIRM SHIPPERS

16.1 GENERAL

(a) Subject to the terms, conditions and limitations

set forth in this Section 16, a Shipper holding capacity rights

under an Eligible Firm Compression Agreement shall have the right to

release all or a portion of such capacity rights and, if a capacity

release is effectuated under this Section 16, to receive a credit

for reservation charge revenues received by Canyon from that other

Shipper for such released capacity.

(b) The deadlines set forth in this Section 16 are

applicable to all parties involved in the capacity release process;

however, they are only applicable if all information provided by the

parties to the transaction is valid and the Replacement Shipper (or

Subreplacement Shipper, if applicable) has been determined to be

creditworthy before the Qualified Bid is tendered, and there are no

special terms or conditions of the release.

process and deadlines set forth in greater detail in the remainder

of this Section 16:

(1) For short-term biddable releases (less than

one (1) year):

(i) The Capacity Release Request should be

tendered by no later than 12:00 p.m. Central Clock Time on a

Business Day;

(ii) The open season ends no earlier than

1:00 p.m. Central Clock Time on a Business Day (evaluation period

begins at 1:00 p.m. Central Clock Time during which contingency is

eliminated, determination of winning Qualified Bid(s) is made, and

ties are broken);

(iii) Evaluation period ends at 2:00 p.m.

Central Clock Time;

(iv) Match or award is communicated by

2:00 p.m. Central Clock Time;

(v) Match response by 2:30 p.m. Central

Clock Time;