TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 66 Original Sheet No. 66 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

12. BALANCING OF GAS

12.1 General Provision. Shipper shall monitor and control its receipts

and deliveries of gas and, if necessary, make appropriate

adjustments in order to maintain a thermal balance of receipts and

deliveries.

TransColorado shall monitor, to the extent of its ability,

receipts and deliveries of gas as compared to quantities nominated

by Shipper, and, based upon available information, advise Shipper

of any imbalances. Upon notification, Shipper shall be obligated

to adjust its receipts and deliveries to correct or avoid any

imbalance between nominations and actual receipt or delivery. Any

adjustment to receipts and deliveries by Shipper, whether or not

pursuant to notification from TransColorado, shall be coordinated

with TransColorado's gas representatives and in accordance with

the TransColorado's scheduling procedures.

12.2 Daily Balancing. If on any day Shipper's deliveries to or receipt

from TransColorado differ from the quantities nominated and

accepted under Section 8.2 by more than the greater of 50 Dth or 5

percent, Shipper, after telephonic or written notification by

TransColorado, shall be afforded 30 days to remedy its imbalance.

12.3 Monthly Balancing. On or before the 25th day of the month

following the month service is rendered, TransColorado will notify

Shipper in writing if (1) Shipper's total deliveries to

TransColorado vary from the amounts nominated by Shipper by 2

percent or more and (2) such amounts have not been corrected in

accordance with Section 12.2. Within 48 hours of TransColorado's

notice, Shipper and TransColorado shall agree upon the appropriate

actions necessary to eliminate the difference. The difference

shall be eliminated within 30 days.

12.4 Imbalance Trading. If Shipper desires to trade imbalances on

TransColorado's EBB, Shipper must consent to TransColorado posting

Shipper's imbalance information on the EBB. During the first ten

days of each month, TransColorado will make imbalance information

available on its EBB to all Shippers. Shippers shall have 72

hours after this period to trade imbalances with other shippers to

reduce or eliminate any imbalances that have occurred during the

month.