Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 307 Original Sheet No. 307 : Effective

GENERAL TERMS AND CONDITIONS

23. NEGOTIATED RATES (Continued)

that the type of pre-existing service is not altered as a result of the

conversion to a negotiated rate. In those situations, TransColorado may seek

a discount-type adjustment based upon the greater of: (a) the negotiated-rate

revenues received or (b) the discounted-rate revenues that otherwise would

have been received.

23.11 Negotiated-Rate Surcharge and Fuel Retention Components. If

TransColorado negotiates surcharge or fuel retention percentage rate

components at lower than the maximum rate level for those components as part

of a negotiated-rate agreement, it will assume any risk of under-recovery of

costs or fuel retention from negotiated-rate Shippers in order to ensure that

its recourse Shippers are not adversely affected due to negotiated-rate

agreements with individual Shippers. If TransColorado negotiates specific

surcharge components of its rates, rather than total rates, as part of a

negotiated rate agreement, TransColorado's discount order policy shall not

apply.