TransColorado Gas Transmission Company

Original Volume No. 1

Effective Date: 12/05/1996, Docket: CP90-1777-009, Status: Effective

Original Sheet No. 42 Original Sheet No. 42 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

Director, Marketing and Transportation

TransColorado Gas Transmission Company

79 South State Street

Salt Lake City, UT 84111

(i) If a transportation agreement is executed,

prepayments of amounts tendered under this provision

shall be applied to service rendered to Shipper by

TransColorado with interest, according to 18 C.F.R.

Section 154.67(c), from the date the payment is made

until the date a service agreement is tendered to

Shipper for execution. If TransColorado is unable

to provide the transportation capacity required by

Shipper, or the Shipper is not a successful bidder,

Shipper's prepayment shall be refunded with interest

according to 18 C.F.R. Section 154.67(c).

(ii) If transportation capacity is available and

TransColorado tenders to the successful bidder a

service agreement that coincides with Shipper's

request, and Shipper fails to execute such agreement

with 15 days of its receipt, the $10,000 prepayment

shall not be refunded to Shipper but shall be

retained by TransColorado.

5.9 Awarding of Capacity. TransColorado's capacity shall be awarded

to the bidding Shipper whose bid offers a rate and term that

yields the highest present value. The present value shall be

calculated using the formula stated below. TransColorado's

acceptance of a bid shall be conditioned upon the Shipper

satisfying TransColorado's creditworthiness standards and

eligibility requirements.

(a) Present value formula:

(Monthly Reservation Charge ) x [1-(1+i)-n ]=Present Value

( Per Unit ) [ i ] per Unit

Where: i = interest rate per month, i.e., overall

rate of return divided by 12 months.

n = term of the agreement, in months.

(b) If two or more firm Shippers have the same present value and

TransColorado's capacity is insufficient to serve the

Shippers, capacity will be allocated pro rata based on

requested CD between these firm Shippers.