Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 240 Original Sheet No. 240 : Effective

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

(b) A Releasing Shipper shall be billed the reservation charge

associated with the entire amount of released capacity pursuant to its

contract rate, which includes all non-usage based charges under

TransColorado's Tariff for such released capacity including but not limited to

additional direct-bill charges, with a concurrent conditional credit for

payment of the reservation charge due from the Replacement or Subreplacement

Shipper(s), as applicable, which received the released capacity. Releasing

Shipper shall also be billed a marketing fee, if applicable. As to any

capacity released by a Releasing Shipper, the Releasing Shipper shall not be

billed or be responsible for: (i) usage charges; and (ii) add-on charges and

surcharges applicable to TransColorado's usage rates under TransColorado's

Tariff such as ACA and Fuel Reimbursement, which are incurred by a Replacement

Shipper or Subreplacement Shipper which received the released capacity.

make payment to TransColorado of the reservation portion of the charges due as

set forth in its Released Firm Transportation Agreement, TransColorado shall

bill the Releasing Shipper(s) from whom such Replacement or Subreplacement

Shipper received the capacity for the amount(s) due, including all applicable

late charges authorized by TransColorado's Tariff, and such amount shall be

paid by such Releasing Shipper within ten (10) days of the receipt of such

billing, or interest shall continue to accrue. In the event that the

Replacement or Subreplacement Shipper has not paid such amount(s) due by the

end of such ten (10) day period, then: (i) the Releasing Shipper has the

right to recall the capacity; and (ii) TransColorado's rights against the

delinquent Replacement/Subreplacement Shipper shall be subrogated to the

related rights of the Releasing Shipper. TransColorado shall make a

reasonable effort to collect from the Replacement/Subreplacement Shipper the

amount(s) due. Such reasonable effort shall not include incurring costs from

outside attorneys, collection agents or other third parties.

(d) All payments received from a Replacement or Subreplacement

Shipper shall first be applied to reservation charges, then to late charges on

reservation charges, then to late charges not on the reservation charges, and

then last to usage-based charges. Payments by Replacement or Subreplacement

Shippers in excess of the total amount(s) due for the Released Firm

Transportation Agreement capacity shall be a credit applied to any outstanding

balance owed under any contract with TransColorado, or a refund if requested

in writing and no such outstanding balance exists.