Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 234 Original Sheet No. 234 : Effective

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

(3) If the above does not break the tie, identify again

the Qualified Bid within each remaining combination with the highest Maximum

Bid Volume. The combination containing such Qualified Bid that

TransColorado's Interactive Website shows was submitted and received earliest

by the Interactive Website (or if the Interactive Website is not available and

the Qualified Bid was submitted in writing, the time TransColorado received

the Qualified Bid) shall be the winning combination. The next highest Maximum

Bid Volume within each remaining combination shall be used as necessary

pursuant to the above first come, first served rule to break any remaining

ties; and so forth as necessary to break any remaining ties.

(4) In no event shall the combination of winning Qualified

Bid(s) result in a total Bid Value less than the highest possible total Bid

Value achievable from a combination of Qualified Bid(s) consistent with the

Qualified Bids, the Capacity Release Request and this Section 6.

(5) The Qualified Bid(s) allocated capacity under Sections

6.10(c) or 6.10(d) shall be winning Qualified Bid(s) to the extent of such

capacity allocations.

(6) Here are examples of the application of Section

6.10(d):

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EXAMPLE (1)

Assume:

Capacity Release Request = 100,000/day for 5 years Qualified Bids:

Maximum Bid Unit Bid Minimum

Volume Term Value Bid Volume

----------- ------- -------- ----------

Bid (a) 20,000/day 5 years $.18 0

Bid (b) 10,000/day 5 years $.17 0

Bid (c) 85,000/day 5 years $.15 0

Winning Qualified Bids: There is only one combination of bids with the

highest possible total Bid Value (Winning Bid Value). Therefore, Bid (a)

receives its Maximum Bid Volume (20,000); Bid (b) receives its Maximum Bid

Volume (10,000); Bid (c) receives 70,000.

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