Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 04/14/2003, Docket: RP03-307-000, Status: Effective

Eighth Revised Sheet No. 95H Eighth Revised Sheet No. 95H : Effective

Superseding: Substitute Seventh Revised Sheet No. 95H

GENERAL TERMS AND CONDITIONS

(continued)

e) Billing: For any releases of capacity (primary, secondary, or subsequent), Transporter shall

directly bill the Replacement Shipper the negotiated rate for the released capacity, as well

as any applicable usage charges and penalties which may be assessed on such transaction. The

Replacement Shipper shall pay such amounts directly to Transporter in accordance with the

requirements of the FTS-1, LFT, FTS-3 and EFBH Rate Schedules and Transporter shall apply such

amounts first to the reservation charge(s) due for Transportation service and then to any

reservation surcharges(s) (if applicable), including late charges related solely to such

reservation charge(s), then to any penalty due, then to usage charges, and finally to late

charges not related to any reservation charge(s) due. The Releasing Shipper will be billed for

and shall pay to Transporter any negotiated Marketing Fee plus the difference between the

Transporter's applicable rates under the Releasing Shipper's Service Agreement and the

negotiated rates billed to the Replacement Shipper, subject to Section 30.9(f). In the event

that the Replacement Shipper's as-billed rate exceeds the Releasing Shipper's applicable rate,

the difference shall, at the Releasing Shipper's discretion, either be credited by Transporter

to the Releasing Shipper's account with Transporter, or be refunded. Any amounts credited

shall be limited to reservation charge revenues received from the Replacement Shipper pursuant

to the Replacement Shipper's Service Agreement with Transporter. If a refund is elected by

the Releasing Shipper, Transporter shall make such refund by wire transfer within ten days of

its receipt of final payment from the Replacement Shipper, together with interest computed in

the manner set forth in Section 7.2 of these General Terms and Conditions.

f) Termination for Non-payment: Should Replacement Shipper not make full payment of all amounts

billed to it by Transporter within 10 days of the date of any invoice, Transporter shall

notify the Replacement Shipper in writing, with a courtesy copy to Releasing Shipper, advising

that if default continues for a thirty day period from such invoice date, the Service

Agreement may be terminated; provided however, Replacement Shipper may avoid termination by

providing Transporter with good and sufficient indemnity bond. If Replacement Shipper fails

to cure or remedy non-payment within such thirty day period, the Service Agreement between

Transporter and the Replacement Shipper may be terminated at the discretion of Transporter or

Releasing Shipper, and Releasing Shipper shall immediately be able to again release such

capacity under these procedures.