TransColorado Gas Transmission Company

Original Volume No. 1

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

Second Revised Sheet No. 225A Second Revised Sheet No. 225A : Superseded

Superseding: First Revised Sheet No. 225A

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

possible total Bid Value (Winning Bid Value) for the capacity in the

Capacity Release Request shall be the winning Qualified Bid(s). A

Qualified Bid may be allocated less than its Maximum Bid Volume, but

in no event shall the Qualified Bid be allocated less than its Minimum Bid

Volume. It is recognized that this procedure is intended to result in the

highest possible total Bid Value for the Releasing Shipper consistent with

the Qualified Bids, and it is possible that a Qualified Bid with the

highest individual Unit Bid Value may be rejected partially or in its

entirety.

(d) If there is more than one combination of Qualified Bids

with a total Bid Value equal to the Winning Bid Value this Section 6.10(d)

provides the procedure for selecting just one such combination, and

thereby the winning Qualified Bid(s).

Subject to the provisions in Sections 6.10(d)(i), (ii)

and (iii) below, the selection of winning Qualified Bid(s) among Qualified

Bids (or combinations thereof) of equal Winning Bid Value is based on the

following order of preference: (i) pro rata, if possible; (ii) preference

for a Qualified Bid with the highest Maximum Bid Volume; (iii) preference

for a Qualified Bid with the lowest Minimum Bid Volume; and (iv) first

come, first served.

The specific Qualified Bid selection procedure is as

follows:

(i) Identify the Winning Bid Value. If there is only

one Qualified Bid, or combination of Qualified Bids, which create the

Winning Bid Value, such Qualified Bid(s) shall be awarded the released

capacity.

(ii) In order to break ties, identify all Qualified

Bids which, alone or in combination with other Qualified Bids, can create

the Winning Bid Value. Rank order these Qualified Bids in order of their

Unit Bid Value from highest to lowest. Allocate the Capacity Release

Request capacity first to the Maximum Bid Volume of each Qualified Bid

with the highest Unit Bid Value; allocate any remainder to the Maximum Bid

Volume of each Qualified Bid with the next highest Unit Bid Value; and so

forth. If, at any step, the available Capacity Release Request capacity

is less than the combined Maximum Bid Volumes of Qualified Bids with equal

Unit Bid Values, then the Capacity Release Request capacity shall be

allocated on a pro rata basis to each Qualified Bid based on its Maximum

Bid Volume.