Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 312 Original Sheet No. 312 : Effective

GENERAL TERMS AND CONDITIONS

29. DISCOUNTING

29.1 Rate Discount Order

If and when TransColorado discounts the rates and charges

applicable for service under any Rate Schedule, the components of

the currently applicable Maximum Rate shall be discounted in the

following order: the first item of the overall charge discounted

will be any surcharge, followed by the base rate charge. Any

other surcharges will be attributed in accordance with the

applicable section of these General Terms and Conditions that

provides for the surcharge as established in individual

proceedings.

29.2 Types of Discounts

If TransColorado agrees to a discounted rate under

TransColorado's Rate Schedules, the following terms may be agreed

to without constituting a material deviation from TransColorado's

applicable pro forma Service Agreement; provided, however, any

such rate or component thereof shall not be less than

TransColorado's applicable minimum rate, nor greater than

TransColorado's applicable maximum rate.

Such rate may apply:

(1) to specified quantities under Shipper's Service

Agreement(s);

(2) to quantities above or below a certain level, or all

quantities if quantities exceed a certain level;

(3) in a specified relationship to quantities actually

transported (i.e., that the rates shall be adjusted in a

specified relationship to the quantities actually

transported);

(4) during specified periods of the year or over specifically

defined periods of time;

(5) to specified receipt points, delivery points, zones,

pooling areas, transportation routes, markets or other

defined geographical areas;

(6) to production reserves, gas supplies or markets committed

by Shipper;