TransColorado Gas Transmission Company

Original Volume No. 1

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

First Revised Sheet No. 227C First Revised Sheet No. 227C : Superseded

Superseding: Original Sheet No. 227C

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

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EXAMPLE (6) The assumptions remain the same as in Example (5), except

that we assume that Bids (c) and (d) were never made.

Winning Qualified Bids: Bid (b) receives 60,000. Bid (e) receives

30,000. Bid (f) receives 10,000.

Explanation: There are two combinations of Qualified Bids with the

Winning Bid Value:

Combination 1 Combination 2

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Bid (a): 60,000 Bid (b): 60,000

Bid (e): 30,000 Bid (e): 30,000

Bid (f): 10,000 Bid (f): 10,000

(Pro rata allocation pursuant to Section 6.10(d)(2) between Bids (a), (b)

and (e) doesn't work, because only Bid (e) has a low enough Minimum Bid

Volume to accept 100/150 capacity allocation and Bid (e) alone cannot

create the Winning Bid Value). Under Section 6.10(d)(iii)(1), we compare

Combinations 1 and 2 for the highest individual Maximum Bid Volumes, and

find them all equal. Under Section 6.10(d)(iii)(2), the tie breaker goes

to the Winning Bid Value combination containing the Qualified Bid having

the highest Maximum Bid Volume and the lowest Minimum Bid Volume. In this

case, Bid (b) has the same (highest) Maximum Bid Volume as Bid (a) but a

lower Minimum Bid Volume. Therefore, Combination 2 wins.

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