Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 305 Original Sheet No. 305 : Effective

GENERAL TERMS AND CONDITIONS

23. NEGOTIATED RATES

23.1 Applicability. Notwithstanding anything to the contrary contained

in this Tariff, TransColorado may charge a negotiated rate for service under

any rate schedule contained in this Tariff to any Shipper that has access to

service at the rates set forth in the applicable rate schedule as shown on the

effective Statement of Rates (recourse rates), and agrees to pay the

negotiated rate.

23.2 Definition. A negotiated rate shall mean a rate for service,

where one or more of the individual rate components exceed the maximum charge,

or are less than the minimum charge, for such components. This definition

shall include a rate derived by a formula where one or more of the individual

rate components may exceed the maximum charge, or may be less than the minimum

charge.

23.3 Conditions. Implementation of a negotiated rate shall be subject

to the following conditions:

(a) TransColorado and Shipper have executed a valid

Transportation Service Agreement to implement negotiated rate(s).

(b) Shipper had access to service pursuant to this FERC Gas

Tariff at the rates set forth on the Statement of Rates at the time of the

execution of the Transportation Service Agreement implementing negotiated

rate(s).

Commission of such agreement. The numbered tariff sheet will state the exact

legal name of the Shipper, the negotiated rate, other applicable charges, the

receipt and delivery points, the volume of gas to be transported and the

applicable rate schedule for service provided at a negotiated rate. The

tariff sheet will include a statement affirming that the negotiated rate

agreement does not deviate in any material aspect from the applicable form of

service agreement or TransColorado will file the agreement pursuant to Section

154.112(b) of the Commission's Regulations.

23.4 Bidding for Firm Capacity. TransColorado and Shipper may

negotiate and post for competitive bidding, a rate that exceeds the applicable

maximum reservation rate. If competing bids under Section 5.3 of these

General Terms and Conditions reflect different rate forms, i.e., negotiated

rates vs. recourse rates, TransColorado shall award the capacity, or portion

thereof, using the evaluation criteria of Section 6.10 of these General Terms

and Conditions; the negotiated reservation charge reflected in such evaluation

criteria cannot exceed the maximum applicable recourse rate. TransColorado

will calculate this value based only on the reservation charge or similar

guaranteed revenue stream.