Canyon Creek Compression Company

Third Revised Volume No. 1

Effective Date: 07/01/2003, Docket: RP03-424-001, Status: Effective

Substitute Third Revised Sheet No. 163 Substitute Third Revised Sheet No. 163 : Effective

Superseding: Second Revised Sheet No. 163

GENERAL TERMS AND CONDITIONS

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delinquent Replacement/Subreplacement Shipper shall be subrogated to

the related rights of the Releasing Shipper; and (3) Canyon shall have

no obligation to pursue the Replacement/Subreplacement Shipper for the

amount(s) due.

(d) All payments received from a Replacement or

Subreplacement Shipper shall first be applied to reservation charges,

then to late charges on reservation charges, then to scheduling charges

and cashout amounts, then to late charges not on the reservation

charges, and then last to commodity-based charges. Payments by

Replacement or Subreplacement Shippers in excess of the total amount(s)

due for the Released Firm Compression Agreement capacity shall be a

credit applied to any outstanding balance owed under any contract with

Canyon, or a refund if requested in writing and no such outstanding

balance exists.

(e) If Canyon is obligated to refund any amounts

attributable to reservation charges for capacity which has been

released, Canyon shall make the applicable refund to the Replacement

Shipper to the extent that Canyon has actually received reservation

charge amounts from the Replacement Shipper in excess of the amounts

assessable under the revised maximum reservation charge rates (which

amounts are credited to the account of the Releasing Shipper under

Section 16.13(d) above). Canyon shall make a corresponding adjustment

to the capacity release credit provided to the Releasing Shipper, and

may reflect the reduced capacity release credit in a lower refund or

adjusted billings to the Releasing Shipper. Any other applicable

reservation charge refunds shall go to the Releasing Shipper.

Commodity rate refunds shall go to the party which paid the commodity

charge.

16.14 NOMINATIONS/SCHEDULING; RECALLS AND REPUTS

(a) RECALLING CAPACITY - GENERAL

Canyon supports the ability of a Releasing Shipper

to specify as a condition of a capacity release offer which recall

notification periods as set out below will be available for use by the

parties to the release and whether recall notices must be provided on a

Business Day. All Replacement and Subreplacement Shippers shall

nominate and schedule natural gas for service hereunder directly with

Canyon in accordance with the applicable procedures set forth in

Section 9 of these General Terms and Conditions. In order for any

capacity recall or capacity reput to be effective for a day, a

Releasing Shipper must give prior notice of such recall or reput and

any allocation of the capacity for a partial recall or reput to Canyon.