Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 310 Original Sheet No. 310 : Effective

GENERAL TERMS AND CONDITIONS

28. SEGMENTATION

28.1 A Shipper may segment its firm capacity to the extent operationally

feasible. In addition, any Shipper may segment its firm capacity in releasing

to a Replacement Shipper to the extent operationally feasible. A Shipper

segmenting its own firm capacity shall effectuate such segmentation through the

nomination process under this Section 28. A Shipper may release firm capacity

on a segmented basis to the extent consistent with this Section 28 by following

the procedures set out in Section 6 of these General Terms and Conditions.

28.2 For the purposes of this Section 28, a segmentation of firm

capacity (whether of Shipper's own capacity or on release) shall be deemed

operationally feasible unless: (i) the segmentation would result in an increase

in firm contractual obligation by TransColorado on any segment or portion of

its system; or (ii) the segmentation would result in a physical haul in a

direction opposite to the primary path under the Agreement being segmented,

absent a determination by TransColorado, which determination will be made

within ten (10) Business Days of the request, that it can physically perform

the segmentation as requested.

28.3 In the event a path is segmented under this Section, the upstream

path segment shall receive priority at all secondary points upstream of the

break point and the downstream path segment shall receive priority at all

secondary points downstream of the break point.

28.4 Shippers may request to segment outside their primary path to the

extent that such a request to segment does not adversely impact TransColorado's

ability to perform its contractual obligations to all Shippers. If

TransColorado determines that it may perform such segmentation, Shippers shall

have priority of service in accordance with Section 8.1(a)(ii)(2) of these

General Terms and Conditions.

28.5 If TransColorado determines that it is operationally feasible, the

Shipper (or Replacement Shipper in the case of a release) may nominate service

at Receipt and Delivery Points for the path segment that results in a reverse

flow from the original path, subject to the discount policy stated in Section

28.7 below. If TransColorado determines that it is operationally feasible,

TransColorado will permit segmentation transactions consisting of forward hauls

up to contract demand and backhauls up to contract demand to the same point at

the same time.