TransColorado Gas Transmission Company

Original Volume No. 1

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

First Revised Sheet No. 227F First Revised Sheet No. 227F : Superseded

Superseding: Original Sheet No. 227F

GENERAL TERMS AND CONDITIONS

6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)

(b) A Releasing Shipper shall be billed the reservation

charge associated with the entire amount of released capacity pursuant to

its contract rate, which includes all non-usage based charges under

TransColorado's Tariff for such released capacity including but not

limited to additional direct-bill charges, with a concurrent conditional

credit for payment of the reservation charge due from the Replacement or

Subreplacement Shipper(s), as applicable, which received the released

capacity. Releasing Shipper shall also be billed a marketing fee, if

applicable. As to any capacity released by a Releasing Shipper, the

Releasing Shipper shall not be billed or be responsible for: (i) usage

charges; and (ii) add-on charges and surcharges applicable to

TransColorado's usage rates under TransColorado's Tariff such as ACA and

Fuel Reimbursement, which are incurred by a Replacement Shipper or

Subreplacement Shipper which received the released capacity.

not make payment to TransColorado of the reservation portion of the

charges due as set forth in its Released Firm Transportation Agreement,

TransColorado shall bill the Releasing Shipper(s) from whom such

Replacement or Subreplacement Shipper received the capacity for the

amount(s) due, including all applicable late charges authorized by

TransColorado's Tariff, and such amount shall be paid by such Releasing

Shipper within ten (10) days of the receipt of such billing, or interest

shall continue to accrue. In the event that the Replacement or

Subreplacement Shipper has not paid such amount(s) due by the end of such

ten (10) day period, then: (i) the Releasing Shipper has the right to

recall the capacity; and (ii) TransColorado's rights against the

delinquent Replacement/Subreplacement Shipper shall be subrogated to the

related rights of the Releasing Shipper. TransColorado shall make a

reasonable effort to collect from the Replacement/Subreplacement Shipper

the amount(s) due. Such reasonable effort shall not include incurring

costs from outside attorneys, collection agents or other third parties.

(d) All payments received from a Replacement or

Subreplacement Shipper shall first be applied to reservation charges, then

to late charges on reservation charges, then to late charges not on the

reservation charges, and then last to usage-based charges. Payments by

Replacement or Subreplacement Shippers in excess of the total amount(s)

due for the Released Firm Transportation Agreement capacity shall be a

credit applied to any outstanding balance owed under any contract with

TransColorado, or a refund if requested in writing and no such outstanding

balance exists.