TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 50 Original Sheet No. 50 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

(b) Permanently released capacity shall be awarded to the

replacement Shipper that offers a rate and term yielding a

present value equal to or greater than the present value of

the releasing Shipper's transportation service agreement.

The present value shall be calculated using the formula

stated below. Acceptance shall be conditioned upon the

replacement Shipper satisfying TransColorado's

creditworthiness standards and eligibility requirements.

(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.

(d) If two or more bids are of equal value, the capacity shall

be awarded according to the criteria specified by the

releasing Shipper. If no method for awarding tied bids is

specified, the capacity shall be awarded pro rata based on

the requested CD.

(e) If no bid is submitted meeting all of the rates, terms and

conditions in the releasing Shipper's release notice, then

no award of capacity shall be made.

(f) For a pre-arranged release, if no better offer is received

during a bid period or the pre-arranged offer is for the

applicable maximum reservation charge and full term of the

release, then the pre-arranged bidding Shipper shall become

the replacement Shipper. If the pre-arranged release is for

less than the applicable maximum reservation charge and a

better offer is received during the bid period, the pre-

arranged bidding Shipper shall have one day for a short-term

release and five days for a long-term release to match the

better offer. If the prearranged bidding Shipper fails to

match the better offer, then the bidding Shipper who present

ed the better offer shall become the replacement Shipper.

(g) To document the award of the release of capacity to the

successful bidding Shipper, the replacement Shipper,

TransColorado will place a service agreement