Canyon Creek Compression Company

Third Revised Volume No. 1

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

Fifth Revised Sheet No. 150 Fifth Revised Sheet No. 150 : Effective

Superseding: Fourth Revised Sheet No. 150

GENERAL TERMS AND CONDITIONS

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(c) A Qualified Bidder may not bid rates which would

exceed Canyon's maximum reservation charge applicable to the Eligible Firm

Compression Agreement capacity; provided, however, that the bid may exceed

the maximum rate to the extent the rate ceilings have been waived for

released capacity contracts of less than one (1) year pursuant to 18 C.F.R.

Section 284.8(i). A Qualified Bid may state a dollar amount or a percentage

of Canyon's maximum reservation rate, unless the Releasing Shipper has

specified that the bid must specify one or the other, in which case, the

Qualified Bid must comport with the Releasing Shipper's choice. If the

Original Shipper is paying a Negotiated Rate or a rate under a Negotiated

Rate Formula pursuant to Section 35 of these General Terms and Conditions, a

Qualified Bidder may not bid a rate which exceeds the applicable Recourse

Rate; except to the extent the rate ceilings have been waived for released

capacity contracts of less than one (1) year pursuant to 18 C.F.R. Section

284.8(i). The maximum Qualified Bid reservation charge includes all demand

surcharges, including all direct-billed charges and Order No. 636 transition

costs which are or may become applicable to the Eligible Firm Compression

Agreement capacity.

(d) All Qualified Bids shall provide for payment of

maximum commodity charges under Canyon's Tariff for the service capacity

bid, as well as all other applicable add-on charges and surcharges under

Canyon's Tariff, such as, but not limited to, ACA, Fuel Gas, Unaccounted For

Gas and any FERC Order No. 636 commodity-based transition cost recovery

surcharge.

(e) A Qualified Bid received by Canyon during an open

season shall be posted by Canyon on the Informational Postings portion of

Canyon Interactive Website upon receipt, without the name of the Qualified

Bidder. A Qualified Bid may be withdrawn by the Qualified Bidder prior to

the close of the open season, but may not be withdrawn thereafter. Following

such withdrawal, the Qualified Bidder cannot bid for the same capacity

during the open season at a lower rate.

(f) All Qualified Bids must be consistent with all

provisions of Canyon's Tariff. Any Qualified Bid inconsistent with Canyon's

Tariff or the applicable Capacity Release Request shall be null and void.

16.9 AWARDING OF RELEASED CAPACITY; EFFECTIVE DATE; GAS

NOMINATIONS

(a) For a Prearranged Release for which no open season

is required under Section 16.6 and which is received at least one (1) hour

prior to a nomination deadline on a Day, Canyon shall award the capacity to

the Prearranged Shipper within one (1) hour after release notification,

provided that all applicable provisions of this Section 16 have been

complied with.