Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 245 Original Sheet No. 245 : Effective

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

(b) Credit applications shall be completed in full with all

information required to establish creditworthiness under the credit criteria

included in Section 18 of these General Terms and Conditions. Should a

potential bidder fail to satisfy such credit criteria, the potential bidder

may still become a Qualified Bidder by providing a prepayment, letter of

credit, or other good and sufficient security satisfactory to TransColorado as

further set forth in Section 18 of these General Terms and Conditions.

financial records, TransColorado shall have the right to amend a Shipper's

line of credit and lower or increase the quantity and term.

(d) TransColorado's determination of a Shipper's

creditworthiness is solely for TransColorado's purposes under TransColorado's

Tariff and such determination is neither a representation nor a guarantee to a

Releasing Shipper or any other entity as to the ability of a Replacement or

Subreplacement Shipper to pay any outstanding amount under a Released Firm

Transportation Agreement.

6.16 Compliance by Shipper. By acquiring released capacity, a Shipper

agrees that it will comply with all provisions of TransColorado's Tariff and

all applicable Commission orders, rules and regulations. Such Shipper also

agrees to be responsible to TransColorado for compliance with all applicable

terms and conditions of TransColorado's Tariff, as well as the terms and

conditions of the Released Firm Transportation Agreement.

6.17 Obligations of Releasing Shipper.

(a) The Releasing Shipper shall continue to be liable and

responsible for all reservation charges associated with the released capacity

up to the reservation charge specified in such Releasing Shipper's Agreement

with TransColorado. The Releasing Shipper agrees that the award of capacity to

a Replacement Shipper or Subreplacement Shipper shall automatically reduce the

Releasing Shipper's firm capacity rights under the Agreement with

TransColorado effective on the effective date of the release for the period of

the release, except for any period that the firm capacity is recalled by the

Releasing Shipper (if the successful bid so permits) until such capacity is

reput to the Replacement or Subreplacement Shipper, in accordance with this

Section 6.

(b) A release by a Replacement Shipper shall not relieve the

Original Shipper or the Replacement Shipper of their obligations under this

Section 6.