Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 277 Original Sheet No. 277 : Effective

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS (Continued)

(iii) The North Expansion Transportation prior 12 months

ending December 31 variance adjustment. The North Expansion Transportation

variance adjustment for each 12 months ending December 31 shall be: the sum

of the 12 months' actual monthly North Expansion fuel gas consumption and the

North Expansion Shippers' proportionate share of the 12 months' lost or gained

and unaccounted-for quantities; less the sum of the 12 month's FGRP-N quantity

collected, as adjusted to exclude the variance-adjustment component of the

FGRP-N plus the unamortized balance at December 31; all divided by actual

annual North Expansion transportation volumes for the 12 months ended December

31, as adjusted for anticipated changes in system operations. Variances will

be accumulated in the appropriate accounts. The variance adjustment component

of the FGRP-N 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.

March 1 of each year that illustrates the application of its fuel

reimbursement provisions for its FGRP and FGRP-N for the 12 months

beginning January 1 of the previous year and establishes variance

adjustments applicable to the FGRP and FGRP-N, respectively, to be

effective during the 12-month period April 1 through March 31 based on

the 12 months ended December 31 as provided in paragraph 12.9(a) and

12.9(b). With respect to the FGRP, the fuel reimbursement report will

show how the monthly fuel reimbursement percentages were calculated and

illustrate how the monthly projected fuel percentages were reconciled

with actual fuel usage for the 12 months ended each December 31. With

respect to the FGRP-N, the fuel reimbursement report will show a

reconciliation of monthly fuel reimbursement per the Statement of Rates

and the actual fuel usage for the 12 months ended December 31.

TransColorado shall have the right to file interim adjustments as

necessary to revise the FGRP-N to reflect significant changes from

previously filed projections. Any revisions to the 12-month application

of TransColorado's Fuel Reimbursement provision will be included in the

prior year's variance adjustment.

(d) If, pursuant to Section 23.11 of the General Terms and Conditions,

TransColorado negotiates a fuel retention rate different than the maximum rate

level, TransColorado will credit the full recourse rate fuel retention amounts

to the appropriate fuel retention accounts.