TransColorado Gas Transmission Company

Original Volume No. 1

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

Second Revised Sheet No. 227D Second Revised Sheet No. 227D : Superseded

Superseding: First Revised Sheet No. 227D

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

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EXAMPLE (7) Assume:

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

were all received through the Interactive Web Site):

Maximum Bid Unit Bid Minimum

Volume Term Value Bid Volume

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

Bid (a) 50,000/day 5 years $.18 50,000

Bid (b) 50,000/day 5 years $.18 50,000

Bid (c) 50,000/day 5 years $.18 50,000

Winning Qualified Bids: The two Qualified Bids shown as received earliest

by TransColorado's Interactive Web Site shall each receive their Maximum

Bid Volume.

Explanation: Clearly, any two Bids in combination have the same Winning

Bid Value. Since the Bids are completely inflexible and have equivalent

Maximum Bid Volumes and equivalent Minimum Bid Volumes, only Section

6.10(d)(iii)(3) can be used to break the tie. The tie breaker looks to

the Qualified Bid(s) shown as received earliest on TransColorado's

Interactive Web Site.

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(e) In no event shall this Section 6.10 result in winning

Qualified Bids with a total volume in excess of the capacity specified in

the Capacity Release Request.

(f) The bid evaluation procedure set forth in this Section

6.10 shall only consider Qualified Bids to the extent they provide for an

objectively quantifiable payment by the Qualified Bidder. A Qualified Bid

based on a percentage of TransColorado's reservation charge shall be

evaluated by TransColorado based solely on the maximum reservation charge

being charged by TransColorado for such service as of the end of the open

season.

(g) If the Releasing Shipper selected a bid evaluation

procedure which is different from the procedure set forth in this Section

6.10, which procedure must comply with Section 6.5, TransColorado shall

determine the winning Qualified Bid(s) pursuant to the Releasing Shipper's

bid evaluation procedure in its Capacity Release Request and computer

diskette (if any) submitted by the Releasing Shipper pursuant to Section

6.5(a).