Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

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Effective Date: 10/23/2006, Docket: RP06-604-000, Status: Effective

First Revised Sheet No. 156 First Revised Sheet No. 156 : Effective

Superseding: Original Sheet No. 156








H. Effect of Challenges to the TCR II Filing:


Current Firm Shippers waive the right to challenge prudence of the TCR II

Amounts. Current Firm Shippers waive the right to challenge the

eligibility of Transporter's TCR II Amounts for all such costs meeting the

following standards: eligible costs are defined as all costs specified as

eligible for recovery under the standards of Order Nos. 500, et al. and

Order Nos. 528, et al., and cases interpreting and applying such standards,

and shall include transportation credits, transportation discounts and

other non-cash consideration, the full amount of the consideration

provided under any settlement which resolves a take-or-pay claim or claims

also resolved by such settlement, and payments for royalty and overriding

royalty claims and severance taxes, where Transporter's take-or-pay

settlement with a producer requires Transporter to pay royalty claims

and/or severance taxes otherwise payable by the producer; however, in no

event shall eligible costs be deemed to include attorneys' fees, expert

fees, arbitration costs or court costs incurred by Transporter in

effectuating any settlement or obtaining any approval thereof. If any TCR

II Amounts are ultimately held to be ineligible for recovery, Transporter

shall remove the subject amounts from its TCR II Reservation Surcharge

and adjust the TCR II Reservation Surcharge accordingly and/or refund or

credit such amounts to Shippers that paid for the TCR II Amounts deemed