Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 313 Original Sheet No. 313 : Effective

GENERAL TERMS AND CONDITIONS

29. DISCOUNTING (Continued)

(7) if one rate component, which was at or below the applicable

maximum rate at the time the discount agreement was

executed, subsequently exceeds the applicable maximum rate

due to a change in TransColorado's maximum rates so that

such rate component must be adjusted downward to equal the

new applicable maximum rate, then other rate components may

be adjusted upward to achieve the agreed upon overall rate,

so long as none of the resulting rate components exceed the

maximum rate applicable to that rate component. Such

changes to rate components shall be applied prospectively,

commencing with the date a Commission Order accepts revised

tariff sheets; and/or

(8) if the rate is based on published index prices for specific

receipt or delivery points or other agreed-upon pricing

reference points for price determination, which indices

conform to Commission policy and standards. Such

discounted rate may be based on the differential between

published index prices or arrived at by formula. Such

discounted rate: (1) shall not change the underlying rate

design; (2) shall not include any minimum bill or minimum

take provision that has the effect of guaranteeing revenue;

and (3) shall in each agreement entered into pursuant

hereto, specify the rate component(s) to be discounted and

the extent thereof.