Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 249 Original Sheet No. 249 : Effective

GENERAL TERMS AND CONDITIONS

7.2 RIGHT OF FIRST REFUSAL PROCEDURE (Continued)

C. Capacity will be made available on a nondiscriminatory basis

and will be assigned on the basis of a bid period determined pursuant to the

open season periods provided for in Section 6 of these General Terms and

Conditions.

(a) A Shipper desiring to acquire the available capacity

shall place a bid with TransColorado, through the Interactive

Website or in writing, during the bid period. The bid shall be

binding once received by TransColorado and may not be withdrawn

by the Bidding Shipper.

(b) The Bidding Shipper's bid must include all information

required by Section 5 of these General Terms and Conditions of

this Tariff.

D. TransColorado shall not be obligated to accept any bid for

the capacity at less than the maximum applicable tariff rate or for a term

greater than 20 years. Upon acceptance of a bid, TransColorado shall inform

the existing Shipper of the terms of the bid to permit the Shipper to exercise

its right of first refusal. A Shipper exercising its right of first refusal

must match the highest bid. The existing Shipper shall have five days to

inform TransColorado that it agrees to match the bid.

TransColorado will determine the value of bids pursuant to

the net present value methodology set forth in Section 6.10 of these General

Terms and Conditions. If the existing Shipper provides notification that it

elects to match the value of the accepted bid, then TransColorado shall

contract with the existing Shipper. If the existing Shipper does not elect to

match the value of the Acquiring Shipper's bid, TransColorado will contract

with the Acquiring Shipper according to the terms and conditions of the

Tariff.

E. If no bids are received and the existing Shipper is willing

to pay the maximum rate, the existing Shipper will be entitled to continue to

receive service for whatever term it chooses. At the end of the term, the

existing Shipper may again exercise its right of first refusal to retain the

capacity.

F. Any shipper that acquires available capacity according to

this section will not be required to repeat the bidding procedures outlined in

Section 5 of this Tariff.

G. If TransColorado and a Shipper enter into a contract for service

that is not the result of the rollover or the right of first refusal

procedure, the bidding requirements included in Section 5 of these General

Terms and Conditions shall apply.