TransColorado Gas Transmission Company

Original Volume No. 1

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Effective Date: 05/15/2000, Docket: GT00- 25-000, Status: Effective

Second Revised Sheet No. 222A Second Revised Sheet No. 222A : Superseded

Superseding: First Revised Sheet No. 222A

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

(iv) The fixed reservation charge and/or volumetric

charge that the Qualified Bidder agrees to pay for the capacity (and if a

volumetric charge, any minimum amount to be billed as a reservation

charge, which must be equal to or greater than any such amount designated

by the Releasing Shipper);

(v) A statement that the Qualified Bidder agrees to

all the terms and conditions of the Capacity Release Request, with only

the modifications as expressly provided in its Qualified Bid, which

modifications must be permitted by the Capacity Release Request and must

conform with the requirements in this Section 6. In the event that the

Releasing Shipper has stated that Qualified Bid(s) may be contingent upon

subsequent events and the Qualified Bidder submits such a contingent

Qualified Bid, then the Qualified Bidder must state in full the nature of

the condition and the last date by which the Qualified Bid is null and

void if the contingency does not occur; and

(vi) Agreement that the Qualified Bidder is bound by

the terms and conditions of the capacity award by TransColorado pursuant

to this Section 6 to the Qualified Bidder, including TransColorado's

standard Form of Service Agreement covering the Rate Schedule applicable

to the released capacity and the terms and conditions of the Qualified Bid

and the Capacity Release Request, in accordance with TransColorado's

Tariff.

(b) The volume in a Qualified Bid may not be less than the

minimum volume required for an Eligible Firm Transportation Agreement

under TransColorado's Tariff. Neither the volume nor the release term

specified in a Qualified Bid may exceed the maximum volume or term

specified in a Capacity Release Request, unless the Capacity Release

Request specifically allows otherwise. A Qualified Bidder must accept all

the terms and conditions of a Capacity Release Request submitted under

Section 6.4 (involving a Prearranged Release) except for the level of the

reservation charge and the CD, unless the Capacity Release Request

specifically allows otherwise.

(c) A Qualified Bidder may not bid rates which would exceed

TransColorado's maximum reservation charge applicable to the Eligible Firm

Transportation Agreement capacity. If the Original Shipper is paying a

Negotiated Rate or a rate under a Negotiated Rate Formula pursuant to

Section 23 of these General Terms and Conditions, a Qualified Bidder may

not bid a rate which exceeds the applicable recourse rate. The maximum

Qualified Bid reservation charge includes all demand surcharges, including

all direct-billed charges which are or may become applicable to the

Eligible Firm Transportation Agreement capacity.