TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 55 Original Sheet No. 55 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

(b) The bidding Shipper's bid must include all information

included in Section 5 of these General Terms and Conditions.

7.4 TransColorado shall not be obligated to accept any bid for the

capacity at less than the maximum applicable tariff rate or for a

term greater than 20 years. If TransColorado accepts a bid,

however, TransColorado shall inform the existing Shipper of the

terms of the bid to permit exercise of its right of first refusal.

The existing Shipper shall have five days to inform TransColorado

that it agrees to match the bid.

If the existing Shipper notifies TransColorado that it elects to

match the terms of price and duration of the accepted bid,

TransColorado shall contract with the existing Shipper. If the

existing Shipper does not elect to match the terms of the

replacement Shipper's bid, TransColorado will contract with the

replacement Shipper according to the terms and conditions of the

tariff.

7.5 If no bids are received and the existing Shipper is willing to pay

the maximum rate, the existing Shipper will be entitled to

continue to receive service for whatever term it chooses. At the

end of the term, the existing Shipper may again exercise its right

of first refusal to retain the capacity.

7.6 Any shipper that acquires available capacity according to this

section will not be required to repeat the bidding procedures

outlined in Section 5 of this tariff.

7.7 If TransColorado and an existing Shipper enter into a new contract

to continue service that was not subject to an evergreen clause or

the right of first refusal procedure, the bidding requirements

included in Section 5 of these General Terms and Conditions shall

apply.

8. PRIORITY OF SERVICE, SCHEDULING OF RECEIPTS, DELIVERIES AND INTERRUPTION

AND CURTAILMENT OF SERVICE.

8.1 Priority of Service

Shippers shall be entitled to transportation service subject

to the availability of pipeline capacity on TransColorado's system

in the following order of declining priority:

(a) All firm transportation service provided at primary receipt

and delivery points.