Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 01/01/2003, Docket: RP00-490-002, Status: Effective

Fourth Revised Sheet No. 149 Fourth Revised Sheet No. 149 : Effective

Superseding: Third Revised Sheet No. 149








6. Notwithstanding anything herein that may be interpreted to the

contrary, in the event that the aggregate Operational Imbalance for

all Interconnect Points in any month is outside a 10% tolerance level

after completion of all netting and trading activity as outlined in

Section 34 of the General Terms and Conditions of Transporter's FERC

Gas Tariff (i.e., either exceeds 110% of the quantities scheduled, or is less

than 90% of the quantities scheduled), and the Operational Imbalance

exceeds 10,000dth, then Company shall be assessed a penalty as described below

or Company and Transporter may agree that quantities may be transferred to

Transporter's PNR Service to the extent the Company has an effective PNR Agreement.

Company shall be subject to all PNR charges.


Company will be charged 30 cents per dekatherm (0.30/dth) for volumes

outside the tolerance level, although Company will be granted an

automatic waiver of such penalty for the first outside-tolerance

month in any six-month period. In addition, if Company's deliveries

or receipts are outside the tolerance level due to incorrect

measurement data communicated to Company by Transporter, any such

penalty will be waived. If any Operational Imbalance is due to an

operational request of Transporter (which shall be confirmed in

writing), or is otherwise caused by Transporter, no penalty shall be

assessed. No imbalance penalty should be imposed when a prior period

adjustment applied to the current period causes or increases a

current month penalty.


7. The Dollar-Valued Operational Imbalances that may arise from time-to-time shall be

resolved at the option of the Party owing such imbalance on either an

"in-kind" basis (upon mutual agreement of the parties as to the

timing and location of payback) or by "cash-out" (payment in cash),

subject to the receipt of any necessary regulatory approval, by

either Transporter or Company as appropriate, purchasing quantities

necessary to clear the entire Dollar-Valued Operational Imbalance.

Any quantities to be received or delivered by Transporter

hereunder in order to resolve an Operational Imbalance must first be

scheduled in accordance with Section 22 of the General Terms and

Conditions of this Tariff.


8. In the event that a capacity constraint occurs on either Party's

system which results in curtailment of quantities through an

Interconnect Point, the Party on whose system the constraint has

occurred shall determine the reallocation of quantities to the

Shippers under the affected Shipper Agreements. Such change in

Scheduled Quantities shall be confirmed in writing as required by

Paragraph 1 above. If the constraint occurs at the Interconnect

Point, the downstream Party shall determine the reallocation of

quantities to the Shippers under the affected Shipper Agreements.