K N Wattenberg Transmission LLC

First Revised Volume No. 1

Effective Date: 11/15/1999, Docket: RP00- 27-000, Status: Effective

First Revised Sheet No. 18 First Revised Sheet No. 18 : Effective

Superseding: Stitute Original Sheet No. 18

FIRM TRANSPORTATION SERVICE cont.

(3) Transporter will charge for or credit for any

imbalance according to the schedule below:

Imbalance as Rate as a % of Average Spot Index

Tiers % of Actual Deliveries K N Charge* K N Credit**

Tier 1 0% to 5% 100% 100%

Tier 2 above 5% to 15% 125% 75%

Tier 3 Greater then 15% 150% 50%

The first 5% of any imbalance will be charged or credited at the

Tier 1 level, the portion above 5% up to 15% will be charged or

credited at the Tier 2 level, and the portion above 15% will be

charged or credited at the Tier 3 level.

* For gas owed Transporter, the highest of the “Spot Gas Prices

Delivered to Pipelines” for CIG DJ Basin, under the average column

for each week,(or the superseding reference number if the titling

is Revised), as published in “Natural gas Intelligence”, for

make-up gas of the negative imbalance for the month in which

the imbalance occurred.

** For gas owed Shipper, the lowest of the “Spot Gas Prices

Delivered to Pipelines” for CIG DJ Basin, under the average column

for each week,(or the superseding reference number if the titling

is Revised), as published in “Natural Gas Intelligence”, the

positive imbalance for the month in which the imbalance occurred.

(4)In the event the “Natural Gas Intelligence” ceases

to publish or fails to publish the spot gas prices for

CIG DJ Basin for any week in which the cash-out pricing for the

month is determined, the spot gas price for CIG, under the

average column for that week, (corresponding reference number

if the title is revised), as published in “Natural Gas

Intelligence” will apply.