Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 273 Original Sheet No. 273 : Effective

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS (Continued)

In determining imbalances, TransColorado shall take into consideration

(a) quantities retained for fuel and lost and unaccounted-for gas and (b)

additional quantities transported pursuant to any agreed-upon action.

TransColorado and Shipper may mutually agree to offset excess or deficient

quantities delivered under other Transportation Service Agreements between

TransColorado and Shipper.

All cashout charges shall be invoiced according to Section 13 to these

General Terms and Conditions.

12.8 Unauthorized Overrun

(a) TransColorado shall levy a charge to any Operator that

exceeds the limits specified below. Such charge is applicable in times of

capacity constraints, or when Operators act in a manner that materially

threatens the integrity of TransColorado's System (e.g. under-performance or

over-performance that causes significant pressure declines or buildups).

(b) On any day TransColorado determines that it is unable to

receive or deliver the total volume of gas scheduled on its System or a

portion of its System, it shall have the right to notify all Operators of a

Critical System Alert. Contemporaneously with, or shortly following such

notice, TransColorado shall give notice to any Operator that would be subject

to an Unauthorized Overrun Charge as provided below.

of gas that varies from the amount scheduled at that receipt or delivery point

on such days.

(d) Upon receipt of a notification from TransColorado, the

Operator shall, within four hours, reduce takes to a level no more than 5%

above the scheduled volume for such day or 50 Dth, whichever is larger. If

after the four hour notice period:

(i) the Operator continues to over-perform by amounts that

exceed the foregoing threshold, TransColorado is permitted to reduce the flow

into or out of its System by partially or fully closing the valves at the

applicable receipt or delivery points.

(ii) the Operator continues to under-perform by failing to

deliver or take the quantities it confirmed for that flow day, an Unauthorized

Overrun Charge shall be levied by TransColorado to the Operator in the amount

shown on the Statement of Rates for those volumes exceeding 5%.