Canyon Creek Compression Company

Third Revised Volume No. 1

Effective Date: 07/23/2001, Docket: RP01-460-000, Status: Effective

Original Sheet No. 197 Original Sheet No. 197 : Effective

GENERAL TERMS AND CONDITIONS

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35.3 ACCOUNTING FOR COSTS AND REVENUES

The allocation of costs to and the recording of

revenues from service at Negotiated Rate(s) will follow Canyon's

normal practices associated with all of its services under this

Tariff. Canyon will maintain separate records of Negotiated Rate

and Negotiated Rate Formula transactions for each billing period.

These records shall include the volumes transported; the billing

determinants (contract MDQ), the rates charged and the revenue

received associated with such transactions. Canyon will separately

identify such transactions in Statements G, I and J (or their

equivalent) filed in any general rate proceeding. Should Canyon

institute a tariff provision to flow through on a current basis to

its Shippers the impact of certain transportation transactions,

the treatment of revenues from Negotiated Rate(s) or Negotiated

Rate Formula(s) shall be specified in such provision.

35.4 CAPACITY RELEASE REVENUE

Canyon and Shipper may agree hereunder to a Negotiated

Rate or Negotiated Rate Formula which includes payment obligations

or crediting mechanisms in the event of a capacity release which

vary from those set out in Section 16.13 of these General Terms

and Conditions. Nothing in the foregoing sentence, however, shall

authorize Canyon or Shipper to violate the Commission's policy

with respect to the negotiation of terms and conditions of

service.