TransColorado Gas Transmission Company

Original Volume No. 1

Effective Date: 12/01/2001, Docket: RP01-419-000, Status: Effective

Third Revised Sheet No. 227 Third Revised Sheet No. 227 : Superseded

Superseding: Second Revised Sheet No. 227

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

(3) If the above does not break the tie, identify

again the Qualified Bid within each remaining combination with the highest

Maximum Bid Volume. The combination containing such Qualified Bid that

TransColorado's Interactive Website shows was submitted and received

earliest by the Interactive Website (or if the Interactive Website is not

available and the Qualified Bid was submitted in writing, the time

TransColorado received the Qualified Bid) shall be the winning

combination. The next highest Maximum Bid Volume within each remaining

combination shall be used as necessary pursuant to the above first come,

first served rule to break any remaining ties; and so forth as necessary

to break any remaining ties.

(4) In no event shall the combination of winning

Qualified Bid(s) result in a total Bid Value less than the highest

possible total Bid Value achievable from a combination of Qualified Bid(s)

consistent with the Qualified Bids, the Capacity Release Request and this

Section 6.

(5) The Qualified Bid(s) allocated capacity under

Sections 6.10(c) or 6.10(d) shall be winning Qualified Bid(s) to the

extent of such capacity allocations.

(6) Here are examples of the application of Section

6.10(d):

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EXAMPLE (1)

Assume:

Capacity Release Request = 100,000/day for 5 years Qualified Bids:

Maximum Bid Unit Bid Minimum

Volume Term Value Bid Volume

----------- ------- -------- ----------

Bid (a) 20,000/day 5 years $.18 0

Bid (b) 10,000/day 5 years $.17 0

Bid (c) 85,000/day 5 years $.15 0

Winning Qualified Bids: There is only one combination of bids with

the highest possible total Bid Value (Winning Bid Value). Therefore, Bid

(a) receives its Maximum Bid Volume (20,000); Bid (b) receives its Maximum

Bid Volume (10,000); Bid (c) receives 70,000.

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