Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 275 Original Sheet No. 275 : Effective

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS (Continued)

(a) The monthly FGRP for Phase I Shippers will be calculated

using the most recent available actual data and will be equal to (i) plus

(iii) of this section. The monthly FGRP for Phase II shippers will be

calculated using the most recent available actual data and be equal to (i)

plus (ii) plus (iv)of this section.

(i) Projected monthly lost and unaccounted-for component of

the FGRP will equal (i)(1) divided by (i)(2):

(1) Projected transmission system losses or gains and

unaccounted-for quantities will be calculated by subtracting the physical

transmission deliveries for the month, two months previous to the projected

month, including actual system gas consumed, from corresponding physical

transmission receipts as adjusted for anticipated changes in system

operations.

(2) Sum of projected monthly scheduled Phase I, Phase

II and North Expansion Transportation receipt quantities. Projected monthly

scheduled transportation receipts will be based on the scheduled Phase I,

Phase II and North Expansion Transportation transmission receipt quantities

for the month, two months previous to the projected month, as adjusted for

anticipated changes in system operations.

(ii) Projected monthly system gas consumption. Projected

transmission system gas consumption will be based on the actual fuel consumed

at each compressor station (excluding fuel gas consumption applicable to North

Expansion Transportation), extraction plant or other fuel consuming facility

for the month, two months previous to the projected month, as adjusted for

anticipated changes in system operations divided by projected monthly

scheduled Phase II transportation receipt quantities. Projected monthly

scheduled transportation receipts will be based on the scheduled transmission

receipt quantities for the month, two months previous to the projected month,

as adjusted for anticipated changes in system operations.

(iii) Phase I prior 12 months ending December 31 variance

adjustment. The variance adjustment for each 12 months ending December 31

shall be: the sum of Phase I Shippers' proportionate share of the 12 months'

lost or gained and unaccounted-for quantities, less the sum of the 12 months'

Phase I Shippers' FGRP quantity collected, as adjusted to exclude the variance

adjustment component of the FGRP plus the unamortized balance at December 31;

all divided by actual Phase I Shippers' annual transportation volumes for the

12 months ended December 31, as adjusted for anticipated changes in system

operations. Monthly variances will be accumulated in the appropriate

accounts. The variance adjustment component of the FGRP will be used to

amortize the previous 12 months ended December 31 variance account balance

over the 12-month period April 1 through March 31.