Trailblazer Pipeline Company

Fourth Revised Volume No. 1

Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective

Original Sheet No. 160 Original Sheet No. 160 : Effective

GENERAL TERMS AND CONDITIONS

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15.3 CASHOUT PROCEDURES

(a) Any imbalance remaining will be cashed out on a

tiered basis pursuant to the following schedule:

OVERAGE UNDERAGE

(Trailblazer (Shipper

pays pays

IMBALANCE LEVEL Shipper) Trailblazer)

----------------------- ------------ ------------

0% to 5% 100% x AMIP 100% x AMIP

Greater than 5% to 10% 90% x AMIP 110% x AMIP

Greater than 10% to 15% 80% x AMIP 120% x AMIP

Greater than 15% to 20% 70% x AMIP 130% x AMIP

Greater than 20% 60% x AMIP 140% x AMIP

(b) Following any offsetting with other Shippers, a

Shipper's remaining imbalance will be cashed out based on the

percentage of that imbalance compared to the total receipts for that

Shipper during the month. For example, if the total receipts were

1,000 Dth and the remaining underage imbalance after offsetting with

other Shippers was 100 Dth, the total Imbalance Level would be 10%.

The first 5% (50 Dth) would be cashed out at 100% of the AMIP and the

remaining 50 Dth would be cashed out at 110% of the AMIP.

arithmetic average of the Weekly Index Prices (WIPs). The WIP for any

week is the arithmetic average of the following two index prices

reported in 'Gas Price Report' issued by "Natural Gas Week":

(1) Midcontinent, Spot Delivered to Pipeline; and

(2) Rocky Mountains, Spot Delivered to Pipeline.