Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 298 Original Sheet No. 298 : Effective

GENERAL TERMS AND CONDITIONS

20. SYSTEM OPERATION - (Continued)

20.7 Applicability of Actions. In exercising its authority pursuant to

Sections 20.3 through 20.6, TransColorado shall generally direct its actions

to Shippers in the following sequence, to the extent such actions and/or

sequencing will tend to alleviate the situation to be addressed:

A. First, to any Shipper that has been identified to take

action and is causing disruption due to its failure to maintain receipts and

deliveries in balance or to match physical flows with nominated receipts or

deliveries;

B. Second, to any Shipper that has been identified to take

action and has failed or is failing to take action to anticipate a change in

demand (i.e., a temperature sensitive LDC or end user failing to respond to

changes in weather);

C. Third, to any Shipper that has been identified to take

action and is operating in a manner that conflicts with sound operational

practices in relation to TransColorado's system; and

D. Lastly, to all other Shippers.

20.8 Refund of Penalty Amounts. All amounts collected by TransColorado

for OFO penalties shall be refunded consistent with Section 12.11 of these

General Terms and Conditions.

20.9 Standards.

A. In issuing OFOs or taking other operational control action

under this Section, TransColorado shall apply consistent and objective

engineering and operational criteria to define the overall operational

integrity of the system and acceptable pressure levels to be maintained, to

evaluate the imminent nature of any threat to these factors, and to determine

what steps are necessary to preserve such factors. Such criteria may be

changed from time to time as operating experience indicates.

B. In applying this Section, TransColorado shall operate its

system on a non-discriminatory manner, without regard to the source of supply,

the identity or nature of any Shipper or the identity of any entity tendering

or receiving gas except as otherwise explicitly provided herein.