K N Wattenberg Transmission LLC

Original Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-144-001, Status: Effective

First Revised Sheet No. 16 First Revised Sheet No. 16 : Effective

Superseding: Substitute Original Sheet No. 16

Firm Transportation Service - cont.

5. BALANCING.

5.1 Thermal balancing of transportation receipts and deliveries is

the responsibility of the Shipper. The Transporter will

provide to the Shipper a monthly "Statement of Gas

Transported" which will notify the Shipper of each month's

beginning cumulative imbalance, activity, and ending

cumulative imbalance. Imbalances are to be minimized and

are subject to the terms and conditions of this Tariff.

5.2 OVERRECEIPTS. An overreceipt occurs when the Dth

received into the Transporter's system (net of Fuel

Reimbursement) is in excess of the Dth redelivered to the

Shipper's designated location(s).

5.3 SETTLEMENT OF OVERRECEIPT IMBALANCE.

a. A month-end overreceipt imbalance in excess of

3,000 Dth shall be reduced to an imbalance of 3,000

Dth or less as of one of the three ensuing

month-ends. If the Shipper does not meet this

schedule, the Transporter may, as of the third ensuing

month-end, in its reasonable discretion, take

appropriate action to reduce the imbalance to 3,000

Dth . Such action may include retention by

Transporter of volumes in excess of 3,000 Dth or

refusal by Transporter to accept additional volumes

from Shipper into the system; and/or

b At third ensuing month-end, if an overreceipt

imbalance has not been reduced below 3, 000 Dth ,

then Transporter may purchase the excess at 70% of

CIG's Index Price (in Dth ) for gas received into its

pipeline from Rocky Mountain sources for the month

in which the imbalance occurred, as published in

Inside FERC Gas Market Report, or any successor

publication.