Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 04/01/1997, Docket: RP97- 18-003, Status: Effective

Seventh Revised Sheet No. 81A Seventh Revised Sheet No. 81A : Effective

Superseding: Sixth Revised Sheet No. 81A

GENERAL TERMS AND CONDITIONS

(continued)

2) After volumes have been scheduled, Transporter has the right to

reduce receipts and/or deliveries of natural gas below the

scheduled volume if the available capacity for such quantity is

reduced as a result of force majeure or any operational

consideration reasonably determined by Transporter. Transporter

shall reduce all scheduled overrun transportation volumes or Rate

Schedule ITS-1 volumes on the basis of the lowest price first

pursuant to Section 22.4(B) of Transporter's FERC Gas Tariff.

3) If, on any day during the month, a Shipper nominates, or has

nominated, flowing gas volumes for the ensuing gas day(s) and such

Shipper's price is less than the price for another Shipper's

non-flowing gas nomination of the available capacity, which is

scheduled by price, at a receipt and/or delivery point, and,

therefore, such Shipper's flowing gas volumes are subject to

interruption, then such flowing gas Shipper shall have the right to

match, as provided below, such higher price of non-flowing gas

nomination in order to retain scheduled volumes of flowing gas.

The term "flowing gas" shall mean:

i.) volumes scheduled and transported the previous gas day

under Rate Schedule ITS-1 or overrun transportation

volumes; or

ii.) volumes considered flowing for a previous gas day and

nominated for the ensuing gas day(s), but not scheduled as

a result of Transporter's operational considerations. To

the extent a Shipper fails to nominate such flowing gas on

the subsequent day, the Shipper will lose such flowing gas

protection. Shipper may not carry over flowing gas

protection from one month to another.

Transporter shall post a notice on Transporter's Electronic

Bulletin Board no later than 2:00 p.m. Central Clock Time notifying

Shippers of the receipt and/or delivery points on Transporter's

system which are subject to flowing gas interruption by nominated

non-flowing gas volumes with a higher price. Shippers that are

subject to interruption shall notify Transporter no later than

3:00 p.m. Central Clock Time of their election to match the higher

price.

Shippers who have provided Transporter with a written weekend

and/or holiday contact list (including contact name and telephone

number) will be given notice by telephone at the same time notice

is posted on Transporter's Electronic Bulletin Board that they are

subject to flowing gas interruption. If Transporter is unable to

contact Shipper by telephone or Shipper does not respond during the

designated notice period, Shipper will be deemed to have elected

not to match the higher price.