K N Wattenberg Transmission LLC

First Revised Volume No. 1

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

Original Sheet No. 68 Original Sheet No. 68 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

24. NEGOTIATED RATES

24.1 Transporter and Shipper may mutually agree in writing to a

Negotiated Rate for service under any rate scheduled contained

in Transporter's Tariff. A Negotiated Rate shall mean a rate

or rate formula for service, the individual components of which

may exceed the maximum reservation charge, if applicable, or

commodity charge, and/or be less that the minimum commodity

charge as shown on Sheet No. 6 of Transporter's Tariff for that

service. Transporter's Recourse Rate is available to any

Shipper that does not desire to negotiate a rate with

Transporter. Transporter shall make any filings at the FERC

necessary to effectuate a Negotiated Rate.

24.2 For purpose of curtailment of interruptible services pursuant

to Section 27.2 and for scheduled interruptible services

pursuant to Section 30, Shippers which have agreed to pay a

Negotiated Rate which exceeds the maximum tariff rate, when

calculated on a 100 percent load factor basis, will be

considered to be paying the maximum Recourse Rate. For

purposes of exercising the right of first refusal pursuant to

Section 28, the highest rate the original firm Shipper must

match if it wishes to continue its firm service is the maximum

Recourse Rate applicable to such service.