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. 306 Original Sheet No. 306 : Effective

GENERAL TERMS AND CONDITIONS

23. NEGOTIATED RATES (Continued)

23.5 Transportation Service Agreements Subject to the Right of First

Refusal. The right of first refusal provided with respect to certain

Shipper's firm service agreements, as described in Section 7 of the General

Terms and Conditions, shall not apply to firm service agreements with

negotiated rates, unless otherwise agreed to in writing by TransColorado.

23.6 Capacity Release. TransColorado and Shipper may, in connection

with their agreement to a Negotiated Rate under a firm transportation rate

schedule, agree upon payment obligations and crediting mechanisms in the event

of a capacity release that vary from or are in addition to those set forth in

Section 6 of this Tariff. This provision does not allow TransColorado and

Shipper to negotiate the terms and conditions of service.

23.7 Capacity Scheduling. For purposes of allocating capacity under

Section 8 of these General Terms and Conditions, a Shipper paying a negotiated

rate that exceeds the maximum rate for that service will be considered to have

paid the maximum rate for such service.

23.8 Accounting for Costs and Revenues. Allocation of costs to, and

recording of revenues from service at negotiated rates(s) or rate formula(s)

will follow TransColorado's normal practices associated with transportation

services provided under this tariff. If TransColorado institutes any revenue

tracker or other device to flow through to its shippers the impact of

interruptible or other transportation transactions, the treatment of such

tracker of revenues from nonconforming negotiated rate(s) or rate formula(s)

shall be specified in the applicable tariff provision.

23.9 Section 4(e) Rate Case Tracking. TransColorado will separately

record the volume transported, billing determinants, rate components,

surcharges and the revenue associated with its negotiated-rate transactions so

that this information can be separately identified, and separately totaled as

part of Statements G, I, and J in any applicable rate case filing under

Section 4(e) of the Natural Gas Act,15 U.S.C. & Section 717(c).

TransColorado's recovery of surcharges, such as ACA and GRI, will comport with

existing practices.

23.10 Rate Treatment. TransColorado shall have the right to seek in

future general rate proceedings discount-type adjustments in the design of

its rates related to negotiated-rate agreements that were converted from pre-

existing discount adjustments to negotiated-rate agreements, provided