Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 272 Original Sheet No. 272 : Effective

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS (Continued)

reported in the publications listed below, starting with the issue dated on or

after TransColorado's nomination deadline for the first of the month service

for that month, and the subsequent issues dated prior to TransColorado's

nomination deadline for the following month's first of the month service.

(i) For gas owed TransColorado, the Inside FERC's Gas

Market Report, first of the month index for El Paso Natural Gas, San Juan

Basin, as published by McGraw-Hill Companies, will apply to the negative

imbalance for the month in which the imbalance occurred.

(ii) For gas owed the Shipper, the Inside FERC's Gas Market

Report, first of the month index for Questar Pipeline Co., Rocky Mountain

Index, as published by McGraw-Hill Companies, will apply to the positive

imbalance for the month in which the imbalance occurred.

(d) Following the ten-day period for offsetting imbalances,

Shippers with remaining imbalances shall pay TransColorado or will be credited

with the appropriate cashout amounts, unless otherwise agreed to in writing by

TransColorado.

(e) In the event Inside FERC's Gas Market Report ceases to publish

entirely or fails to publish the index prices listed in subsection (c) above,

the following procedures shall apply in determining an MIP.

(i) For gas owed TransColorado, the highest of the Midpoint

prices for New Mexico San Juan Basin, El Paso, Non-Bondad, for each week (or

the superseding reference if the publication titling is revised), as published

in Gas Daily, as published by Financial Times Energy will apply for make-up of

gas of any negative imbalance for the month in which the imbalance occurred.

(ii) For gas owed the Shipper, the lowest of the Midpoint

prices, for Rockies, Questar, for each week (or the superseding reference if

the publication titling is revised), as published in Gas Daily, as published

by Financial Times Energy will apply for make-up of gas of any positive

imbalance for the month in which the imbalance occurred.

12.7 Assessment of Imbalances. TransColorado will not assess imbalances

if (a) Shipper's action is excused by force majeure, (b) TransColorado has

invoked force majeure, (c) imbalances are caused by TransColorado or result

from TransColorado's error or (d) TransColorado has previously imposed and

Shipper has previously paid imbalance charges on the quantities of gas

comprising the imbalance amount.