Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 11/01/1996, Docket: RP95-271-007, Status: Effective

1st Revised Sheet No. 91C 1st Revised Sheet No. 91C : Effective

Superseding: Original Sheet No. 91C

GENERAL TERMS AND CONDITIONS

(Continued)

c) For the purpose of calculating the Allocation Factor in Section

25(D)(1)(a), the MAXDTQ for each Current Firm Shipper shall be

determined in accordance with the following:

i) For TCR II filings made prior to November 1, 1996, the MAXDTQ will be

equal to the Current Firm Shipper's MAXDTQ as of the date of such

filing; or

ii) For TCR II filings made on or after November 1, 1996, the MAXDTQ will

be equal to the Current Firm Shipper's MAXDTQ as of November 1, 1996.

d) The calculation of the Allocation Factor in Section 25(D)(1)(a) shall

also include the MAXDTQs for previously held capacity ("Previously Held

Capacity") as follows: (1) for Aquila Energy Marketing Company, 14,600

dth/day, (2)for Robert L. Bayless, 3,000 dth/day, (3)for Signal Fuels

Trading Corp., 5,000 dth/day, and (4) for Sunrise Energy Company,

50,000 dth/day.

2) The Allocation Factor will be multiplied by the TCR II Amounts to derive

the amount applicable to each Current Firm Shipper. To calculate the TCR

II Reservation Surcharge for each Current Firm Shipper, the amount

applicable to each Current Firm Shipper will be divided by the sum of the

Current Firm Shipper's MAXDTQ (in accordance with Section 25(D)(1)(c)(i)

or (ii) as applicable) for the West of Thoreau area times the number of

days in the Amortization Period.

3) Transporter will adjust the TCR II Reservation Surcharge prospectively to

include additional take-or-pay costs as they are paid by Transwestern and

made effective as provided in FERC's order accepting Transporter's filing

to collect such costs.

E. Amortization Period: The Amortization Period for TCR II Amounts shall be

ten years, commencing with the effective date of each filing made by

Transporter to collect such TCR II Amounts. Each such filing shall begin

a new ten-year Amortization Period for the costs included in that filing.

F. Transporter shall assume the risk of collection for any allocated TCR II

Surcharges not paid by any Current Firm Shippers listed above subject to

Transporter's collection rights under Section 7 of these General Terms and

Conditions.

G. Transition costs: Transition Costs shall include Commission authorized

amounts that Transporter has paid or has been obligated by

agreement to pay to producers/suppliers in settlement of take or pay or

other quantity provisions in gas purchase contracts or to reform

uneconomic contract terms in such contracts (including without limitation,

quantity, price, volume, or contract duration).