Colorado Interstate Gas Company

First Revised Volume No. 1

Effective Date: 06/01/2010, Docket: RP10-689-000, Status: Effective

First Revised Sheet No. 380Q.02 First Revised Sheet No. 380Q.02

Superseding: Original Sheet No. 380Q.02

GENERAL TERMS AND CONDITIONS

(Continued)

28. OPERATIONAL PURCHASES AND SALES

28.1 Transporter may buy and/or sell gas to the extent necessary: (i) to

maintain system pressure and line pack; (ii) to manage system

storage; (iii) to balance fuel quantities; (iv) to implement the

cash out of imbalances procedures contained in Section 10.5 of the

General Terms and Conditions of the Tariff; (v) to implement the gas

retention requirements of Rate Schedules TSB-Y, TSB-T, FS-T, FS-Y,

IS-T, IS-Y, NNT-1, NNT-2, FS-1, PAL-1, IS-1, HUB-1, SS-1, SS-HP and

APAL-1 contained in the Tariff; (vi) to maintain system balance due

to plant shrinkage from liquids extraction; and (vii) to perform

other operational functions of Transporter in connection with

transportation, storage and other similar services.

28.2 Transporter will post its operational sales quantities for bidding

on its electronic bulletin board in accordance with the applicable

bidding provisions contained in Section 9 of the General Terms and

Conditions of this Tariff.

28.3 Transporter will file a report indicating the source of the

operational gas purchased/sold, the date of such purchases/sales,

volumes, the purchase/sale price, the costs and revenues from such

purchases/sales and the disposition of the associated costs and

revenues for all types of operational purchases and sales. Such

report shall also include an explanation of the purpose of any

operational purchases/sales as well as a reconciliation and

accounting of operational purchases/sales that are associated with

Section 1.30 (Fuel), Sections 10.5 (Cash Out) and 14.1 (Scheduled

Imbalance Penalty), Section 15.4 (Revenue Sharing), and as

applicable, system balancing and service flexibility. Transporter

will file such report in conjunction with its annual Fuel Gas and

Lost, Unaccounted-For and Other Fuel Gas True-Up filing pursuant to

Section 13 of the General Terms and Conditions.