Canyon Creek Compression Company

Third Revised Volume No. 1

Effective Date: 05/01/1997, Docket: RP97- 66-002, Status: Effective

First Revised Sheet No. 162 First Revised Sheet No. 162 : Effective

Superseding: Original Sheet No. 162

GENERAL TERMS AND CONDITIONS

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16.13 BILLING

(a) Canyon shall bill the Replacement Shippers and the

Subreplacement Shippers the rate(s) specified in the Released Firm

Compression Agreements and any other applicable charges and each

such Replacement Shipper and Subreplacement Shipper shall pay the

billed amounts directly to Canyon. Canyon shall have the right to

discount the commodity rates under the Released Firm Transportation

Agreement. Canyon will support volumetric releases with volumetric

commitments by fully accounting for volumetric and reservation

components, consistent with the rules and regulations enunciated by

the Federal Energy Regulatory Commission.

(b) A Releasing Shipper shall be billed the reservation

charge associated with the entire amount of released capacity

pursuant to its contract rate, which includes all non-commodity

based charges under Canyon's Tariff for such released capacity

including but not limited to additional direct-bill charges and FERC

Order No. 636 transition costs, with a concurrent conditional credit

for payment of the reservation charge due from the Replacement or

Subreplacement Shipper(s), as applicable, which received the

released capacity. A Releasing Shipper shall also be billed a

marketing fee, if applicable, pursuant to the provisions of

Section 17 of these General Terms and Conditions. As to any capacity

released by a Releasing Shipper, the Releasing Shipper shall not be

billed or be responsible for: (1) commodity charges; (2) cashouts

of imbalances; and (3) add-on charges and surcharges applicable to

Canyon's commodity rates under Canyon's Tariff such as ACA, Fuel Gas

and Unaccounted For Gas, which are incurred by a Replacement Shipper

or Subreplacement Shipper which received the released capacity.

does not make payment to Canyon of the reservation portion of the

charges due as set forth in its Released Firm Compression Agreement,

Canyon shall bill the Releasing Shipper(s) from whom such

Replacement or Subreplacement Shipper received the capacity for the

amount(s) due, including all applicable late charges authorized by

Canyon's Tariff, and such amount shall be paid by such Releasing

Shipper within ten (10) days of the receipt of such billing, or

interest shall continue to accrue. In the event that the Replacement

or Subreplacement Shipper has not paid such amount(s) due by the end

of such ten (10) day period, then: (1) the Releasing Shipper has

the right to recall the capacity; (2) Canyon's rights against the