TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 54 Original Sheet No. 54 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

reservation charges associated with the released capacity up to

the maximum reservation charge specified in the releasing

Shipper's service agreement. Subsequent releases by a replacement

Shipper shall not relieve the original or any subsequent releasing

Shipper of its obligations under this tariff.

7. RIGHT OF FIRST REFUSAL PROCEDURE

7.1 Upon expiration or notice of termination from TransColorado of a

firm service agreement with no evergreen clause, and an initial

term of one year or greater, Shipper shall have a right of first

refusal to extend service under a new service agreement. The

Shipper must give TransColorado written notice that it will

utilize the right-of-first refusal procedure the earlier of (i)

the date of the notice period provided for in Shipper's contract;

or (ii) 90 days prior to the expiration of the term of the

contract. TransColorado shall provide written notice to the

Shipper 30 days in advance of the applicable deadline. In the

notice TransColorado will specify the information Shippers need to

provide to exercise their right of first refusal.

7.2 Upon notification, TransColorado shall post on its EBB the terms

and conditions of the available capacity under the expiring

contract as follows:

(a) CD stated in Dth/day.

(b) The receipt and delivery points at which capacity is

available and the firm quantities at such points.

(d) Term.

(e) The applicable rates for the service.

(f) The capacity is subject to right of first refusal.

7.3 Capacity will be made available on a nondiscriminatory basis and

will be assigned on the basis of a bid period for a period of not

less than 20 days.

(a) A Shipper desiring to acquire the available capacity shall

place a bid with TransColorado, through its EBB, during the

bid period.