TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 74 Original Sheet No. 74 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

composition of Shipper's debts under the federal Bankruptcy Act or

any other applicable federal or state law, or the appointment of a

receiver, liquidator, assignee, trustee, sequestrator (or other

similar official) of the assets of Shipper or the winding-up or

liquidation of Shipper's affairs.

19. SHIPPER'S FAILURE TO COMPLY WITH TERMS

TransColorado shall not be required to perform service under any

transportation rate schedule included in this tariff if Shipper fails to

comply with the terms of its transportation service agreement and the

General Terms and Conditions.

20. SYSTEM OPERATION

TransColorado may take such action as reasonably necessary to

prevent damage to or material deterioration of its transmission system

and to maintain the operational integrity of the system.

21. ANNUAL CHARGE ADJUSTMENT PROVISION

21.1 Purpose. TransColorado is assessed an annual charge by the FERC

to reimburse the United States Treasury for costs incurred by the

Commission, other than costs incurred in administering Part I of

the Federal Power Act, and costs not covered by filing fees. To

enable TransColorado to recover this annual charge, pursuant to 18

C.F.R. Section 154.402, this section establishes an Annual Charge

Adjustment to be applicable to all of TransColorado's rate

schedules as set forth in the Statement of Rates of this FERC Gas

Tariff, Volume No. 1.

21.2 Basis of Annual Charge Adjustment. The rate schedules specified

in the Statement of Rates of this tariff shall include the

applicable Annual Charge Adjustment. Such adjustment shall be a

base increment, specified by the FERC at the time it calculates

the annual charge bills, and adjusted to TransColorado's pressure

base and heat content, if required.

21.3 Accounting Procedure. TransColorado will account for annual

charges paid by charging the amount to Account No. 928, Regulatory

Commission Expenses, of the