Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 269 Original Sheet No. 269 : Effective

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS

12.1 General Provision. Shipper shall monitor and control its receipts

and deliveries of gas and, if necessary, make appropriate adjustments in order

to maintain a thermal balance of receipts and deliveries. TransColorado shall

not be obligated to receive or deliver gas that differs from the confirmed

nomination between Shipper and TransColorado.

TransColorado shall monitor, to the extent of its ability,

receipts and deliveries of gas as compared to quantities nominated by Shipper,

and, based upon available information, advise Shipper of any imbalances. Upon

notification, Shipper shall be obligated to adjust its receipts and deliveries

to correct or avoid any imbalance between nominations and actual receipt or

delivery. Any adjustment to receipts and deliveries by Shipper, whether or

not pursuant to notification from TransColorado, shall be coordinated with

TransColorado's gas representatives and in accordance with the TransColorado's

scheduling procedures.

12.2 Balancing Upon Termination. In the event the quantities of gas

received and delivered are not in balance at the end of the term of the

service agreement, then such balance shall be achieved at the earliest

practicable date, not to exceed 45 days after the imbalance is determined by

extending receipts or deliveries, as applicable, at the appropriate point(s)

of receipt or point(s) of delivery, until such balance is achieved, or by such

other method as is then mutually agreed upon by TransColorado and Shipper.

12.3 Maintenance of System Integrity. Nothing in this section limits

TransColorado's right to take action that may be required to adjust receipts

and deliveries of gas in order to alleviate conditions that threaten the

integrity of its system, including maintenance of service to higher-priority

customers.

12.4 Imbalances with the Other Parties. TransColorado shall not be

responsible for eliminating any imbalances between Shipper and any third

party. Furthermore, TransColorado shall not be obligated to adjust or deviate

from its standard operating and accounting procedures in order to alleviate

any such imbalances.

12.5 Netting and Trading

(a) Imbalances under a Shipper(s different Agreements will be

netted together to obtain the Shipper(s Total Monthly Imbalance. The Total

Monthly Imbalance will be shown with the monthly billings sent to Shippers.