K N Wattenberg Transmission LLC

First Revised Volume No. 1

Effective Date: 05/22/1998, Docket: RP98-192-000, Status: Effective

Original Sheet No. 53 Original Sheet No. 53 : Effective

General Terms and Conditions - continued

from the quantities delivered on any day. Variations shall be

kept to the minimum and shall be balanced as soon as

practicable. Transporter shall be under no obligation to accept

from Shipper more gas at any Receipt Point than has been

nominated by such Shipper for the Receipt Point for that day.

10. IMBALANCES.

Transporter is not responsible for eliminating any imbalances in

volumes between Shipper and any third party, including imbalances

between local distribution companies and specific end users.

Transporter is not obligated to deviate from its standard operating

and accounting procedures in order to reduce or eliminate any such

third party imbalances. No imbalance penalty shall be imposed when a

prior period adjustment applied to the current period causes or

increases a current month penalty.

11. DELIVERY.

Any transportation gas delivered by Transporter, which is designated

by either Transporter or Shipper as gas to satisfy past imbalances,

shall be deemed first gas through the meter relative to other

transportation gas delivered by Transporter.

12. RECEIPTS.

If Transporter receives gas from Shipper at a Point of Receipt

through which transportation quantities are being received, all firm

transportation quantities will be deemed first through the meter and

all interruptible transportation quantities will be deemed second

through the meter.

13. POSSESSION OF GAS.

a. Shipper shall be in exclusive control and possession of the gas

until such has been received at the Point(s) of Receipt.