Canyon Creek Compression Company

Third Revised Volume No. 1

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Effective Date: 05/01/1997, Docket: RP97- 66-005, Status: Effective

Substitute First Revised Sheet No. 165 Substitute First Revised Sheet No. 165 : Effective

Superseding: Original Sheet No. 165

GENERAL TERMS AND CONDITIONS

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16.17 OBLIGATIONS OF RELEASING SHIPPER

(a) The Releasing Shipper shall continue to be liable

and responsible for all reservation charges associated with the

released capacity up to the reservation charge specified in such

Releasing Shipper's Agreement with Canyon. The Releasing Shipper

agrees that the award of capacity and the execution of a Released

Firm Compression Agreement by a Replacement Shipper or

Subreplacement Shipper shall automatically reduce the Releasing

Shipper's firm capacity rights under the Agreement with Canyon

effective on the effective date of the release for the period of the

release, except for any period that the firm capacity is recalled by

the Releasing Shipper (if the successful bid so permits) until such

capacity is reput to the Replacement or Subreplacement Shipper in

accordance with this Section 16.

(b) A release by a Replacement Shipper shall not

relieve the Original Shipper or the Replacement Shipper of their

obligations under this Section 16.

(c) In the event that a Released Firm Compression

Agreement covers the remaining term of the Eligible Firm Compression

Agreement at maximum rates, then the Original Shipper may request in

writing that the Original Shipper's rights and obligations under the

Eligible Firm Compression Agreement shall be prospectively assigned

to, and be assumed by, the Replacement Shipper. Following such

request, Canyon shall send the Original Shipper and Replacement

Shipper an assignment agreement to so provide. In the event that the

Original Shipper and the Replacement Shipper execute such assignment

agreement, subject to the approval of Canyon's lenders if Canyon's

loan agreement so requires, the Original Shipper shall be released

from all liability under the Eligible Firm Compression Agreement

arising after such execution date.

16.18 CONVERSIONS BETWEEN MONTHLY AND DAILY RESERVATION RATES

For less than maximum rate transactions only, converting

daily rate to monthly rate is accomplished by multiplying the daily

rate times number of days in rate period, dividing the result by

number of months in rate period and taking the remainder out to five

(5) decimal places and rounding up or down to Canyon's specified

decimal place. Converting a monthly rate to a daily rate is

accomplished by multiplying the monthly rate by number of months in

rate period, dividing the result by number of days in rate period

and taking the remainder out to five (5) decimal places and rounding

up or down to Canyon's specified decimal place.