Colorado Interstate Gas Company

First Revised Volume No. 1

Effective Date: 03/01/2008, Docket: RP07-666-000, Status: Suspended

Original Sheet No. 380L.01 Original Sheet No. 380L.01 : Suspended

GENERAL TERMS AND CONDITIONS

(Continued)

Article 42 - FUEL AND L&U (Continued)

42.6 Fuel Savings Sharing Mechanism - If Transporter experiences an

identifiable reduction in fuel consumption on its system

(excluding Lost and Unaccounted For ("L&U") savings or other

changes) that is directly related to a new qualifying capital

project placed into service under this mechanism, Transporter

shall retain eighty percent (80%) of the annual fuel consumption

savings resulting from a qualifying project for a period of five

(5) years from the date the project is initially placed into

service. Transporter shall be solely responsible for all capital

costs of a qualifying project and Transporter shall not at any

time in the future include any capital cost of a qualifying

project in its rates. Transporter's shippers shall receive twenty

percent (20%) of the fuel savings (in Dths) from any qualifying

project under this mechanism during the first five (5) years of

each project and 100% of any fuel savings (in Dths) thereafter.

Qualifying projects under this mechanism: (i) shall include

projects that are specifically designed to save fuel gas on

Transporter's system, and (ii) must be placed into service by

the earlier of: (a) the date that new rates become effective

pursuant to a general rate change application submitted by

Transporter pursuant to Section 4 of the Natural Gas Act, (b) the

date that rates become effective pursuant to action taken by the

Federal Energy Regulatory Commission under Section 5 of the

Natural Gas Act, or (c) October 1, 2011. In its annual fuel

filing to establish its fuel percentage, Transporter shall fully

identify the capital project that produced the fuel consumption

savings as well as all pertinent data substantiating the fuel

savings (in Dths) to be shared. Further, Transporter shall

demonstrate that each project qualifies under this Near-Term Fuel

Savings Sharing Mechanism.

42.7 Neither the Fuel Gas reimbursement percentage nor the Lost,

Unaccounted For and Other Fuel Gas retention percentage may be

less than zero.