TransColorado Gas Transmission Company

Original Volume No. 1

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Effective Date: 10/01/2002, Docket: RP02-460-000, Status: Effective

Third Revised Sheet No. 224 Third Revised Sheet No. 224 : Superseded

Superseding: Second Revised Sheet No. 224

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

writing or electronic means. In the event of a timely match, then the

Prearranged Shipper shall be awarded the released capacity. To the extent

that the Prearranged Shipper fails to timely match the winning Qualified

Bid(s) with a higher Bid Value, then the Qualified Bidder(s) who made the

winning Qualified Bid shall be awarded the capacity. To the extent that

the Prearranged Shipper fails to timely match the winning Qualified Bid(s)

with a higher Bid Value, then the Qualified Bid(s) who made the winning

Qualified Bid shall be awarded the capacity. The timelines for the above

actions shall be as provided in Section 6.1.

(c) For any other Capacity Release Request, the capacity

rights shall be automatically awarded to the winning Qualified Bidder(s)

when TransColorado has identified the entity(s) to receive the released

capacity under this Section 6.

(d) A capacity release shall become effective, and

nominations for gas service utilizing the release capacity shall be

accepted, at the next available opportunity that is at least one hour

after capacity has been awarded hereunder for nominations under Section

8.2 of these General Terms and Conditions, consistent with 18 C.F.R.

Section 284.12(c)(1)(ii). TransColorado shall issue a contract to the

winning Qualified Bidder within one (1) hour after the capacity has been

awarded. So long as the winning bidder has pre-approved credit, that

bidder can submit a nomination consistent with the above regardless of

whether a contract with TransColorado covering the capacity awarded has

been executed, subject to the provisions of the relevant rate schedule

regarding execution of a contract tendered by TransColorado. If the

original Shipper has already submitted a nomination on that day under the

Agreement being released, and if the Replacement Agreement covering the

released capacity is effective the same day, the original Shipper may

incur overrun charges if his nomination exceeds the reduced contractual

parameters under the original Agreement resulting from the release.

(e) Gas nominations for transportation pursuant to released

capacity are subject to the provisions of Section 8 of these General Terms

and Conditions. Gas nominations by a Shipper utilizing released capacity

awarded by TransColorado shall constitute Shipper's binding acceptance of

the terms and conditions of the capacity award by TransColorado pursuant

to this Section 6, 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.

(f) Subject to the other provisions in this Section 6, in

the event that there is no Qualified Bidder or Prearranged Shipper for

posted Eligible Firm Transportation Agreement capacity during an open

season, no capacity release will be awarded and the Releasing Shipper

shall retain the capacity sought to be released.