Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 233 Original Sheet No. 233 : Effective

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

To the extent such a pro rata allocation would result

in a capacity allocation to one or more Qualified Bid(s) below its Minimum Bid

Volume, then such below-minimum Qualified Bids shall be discarded in their

entirety and the Capacity Release Request capacity shall instead be allocated

on a pro rata basis (based on the Maximum Bid Volume of each Qualified Bid)

among the remaining Qualified Bid(s).

(iii) In the event that the previous Section 6.10(d)(ii)

pro rata allocation procedure does not result in a single winning combination

of Qualified Bid(s) with the Winning Bid Value, then Section 6.10(d)(ii) shall

be disregarded and the winning Qualified Bid(s) shall be determined in the

following manner:

(1) Identify the highest individual Maximum Bid Volume

for a Qualified Bid which, alone or in combination with other Qualified

Bid(s), can create the Winning Bid Value. Discard all Qualified Bid

combinations which do not contain a Qualified Bid with such highest Maximum

Bid Volume. Identify the highest volume which can be allocated to such

Qualified Bid with such highest Maximum Bid Volume in the remaining

combinations and still have the Winning Bid Value. Discard all combinations

of Qualified Bid(s) which do not contain the highest such volume allocation.

If this does not break the tie, then repeat the above procedure looking to the

next highest Maximum Bid Volume, with the highest volume allocated thereto,

within each remaining combination of Qualified Bid(s) with a Winning Bid

Value; and so forth, until the tie is broken or all Qualified Bids in the

remaining combinations are reviewed.

(2) If the above does not break the tie, identify

again the Qualified Bid within each remaining combination with the highest

Maximum Bid Volume and the highest volume allocated to such Qualified Bid, and

identify which such Qualified Bid has the lowest Minimum Bid Volume. Discard

all combinations which do not contain such Qualified Bid. If this does not

break the tie, repeat the above procedure looking to the next highest Maximum

Bid Volume, with the lowest Minimum Bid Volume, within each remaining

combination of Qualified Bid(s) with the Winning Bid Value; and so forth,

until the tie is broken or all Qualified Bid(s) in the remaining combination

are reviewed.