Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

Effective Date: 12/28/2007, Docket: RP08-167-000, Status: Effective

Original Sheet No. 232 Original Sheet No. 232 : Effective

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

possible total Bid Value (Winning Bid Value) for the capacity in the

Capacity Release Request shall be the winning Qualified Bid(s). A

Qualified Bid may be allocated less than its Maximum Bid Volume, but

in no event shall the Qualified Bid be allocated less than its Minimum Bid

Volume. It is recognized that this procedure is intended to result in the

highest possible total Bid Value for the Releasing Shipper consistent with the

Qualified Bids, and it is possible that a Qualified Bid with the highest

individual Unit Bid Value may be rejected partially or in its entirety.

(d) If there is more than one combination of Qualified Bids with

a total Bid Value equal to the Winning Bid Value this Section 6.10(d) provides

the procedure for selecting just one such combination, and thereby the winning

Qualified Bid(s).

Subject to the provisions in Sections 6.10(d)(i), (ii) and

(iii) below, the selection of winning Qualified Bid(s) among Qualified Bids

(or combinations thereof) of equal Winning Bid Value is based on the following

order of preference: (i) pro rata, if possible; (ii) preference for a

Qualified Bid with the highest Maximum Bid Volume; (iii) preference for a

Qualified Bid with the lowest Minimum Bid Volume; and (iv) first come, first

served.

The specific Qualified Bid selection procedure is as

follows:

(i) Identify the Winning Bid Value. If there is only one

Qualified Bid, or combination of Qualified Bids, which create the Winning Bid

Value, such Qualified Bid(s) shall be awarded the released capacity.

(ii) In order to break ties, identify all Qualified Bids

which, alone or in combination with other Qualified Bids, can create the

Winning Bid Value. Rank order these Qualified Bids in order of their Unit Bid

Value from highest to lowest. Allocate the Capacity Release Request capacity

first to the Maximum Bid Volume of each Qualified Bid with the highest Unit

Bid Value; allocate any remainder to the Maximum Bid Volume of each Qualified

Bid with the next highest Unit Bid Value; and so forth. If, at any step, the

available Capacity Release Request capacity is less than the combined Maximum

Bid Volumes of Qualified Bids with equal Unit Bid Values, then the Capacity

Release Request capacity shall be allocated on a pro rata basis to each

Qualified Bid based on its Maximum Bid Volume.