K N Wattenberg Transmission LLC

First Revised Volume No. 1

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Effective Date: 08/01/2000, Docket: RP00-362-000, Status: Effective

Second Revised Sheet No. 31 Second Revised Sheet No. 31 : Effective

Superseding: First Revised Sheet No. 31

Interruptible Transportation Service - continued

5.3 MONTHLY BALANCING

(1) Within twenty (20) days after month end, Transporter will notify

Shipper of its

monthly imbalance. Imbalances may be traded among a Shipper's

transportation

agreements as long as the trade reduces the imbalance to

Transporter.

(2) If trading among Shipper's transportation agreements on the same

system are

not used to cure the imbalance, the Shipper's imbalance will be

posted on

its electronic system, unless Shipper requests that postings not be

made and for

the remainder of that month or at least ten (10) days, those

imbalances may be

traded. To consummate a trade, both trading parties must inform

Transporter via

the electronic bulletin board or facsimile of their agreement to

trade and their

desire for Transporter to offset the imbalances. Trades will be

permitted as long

as the Shippers have imbalances in opposite directions. After

receiving notices

from both Trading parties, Transporter will reflect the trade by

posting adjusted

imbalances on its electronic system.

(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 Delivers K N Charge* K

N Credit**

Tier 1 0% to 5% 100%

100%

Tier 2 above 5% to 15% 125%

75%

Tier 3 Greater than 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 originated for the month in

which

the imbalance occurred.