TransColorado Gas Transmission Company

Original Volume No. 1

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

Third Revised Sheet No. 228 Third Revised Sheet No. 228 : Suspended

Superseding: Second Revised Sheet No. 228

GENERAL TERMS AND CONDITIONS

7. RIGHT OF FIRST REFUSAL PROCEDURE

7.1 Upon expiration or notice of termination from TransColorado of

a firm service agreement with a term of one year or greater, Shipper shall

have a right of first refusal to extend service under a new service

agreement. The Shipper must give TransColorado written notice that it

will utilize the right-of-first refusal procedure the earlier of (a) the

date of the notice period provided for in Shipper's contract; or (b) 90

days prior to the expiration of the term of the contract. TransColorado

shall provide written notice to the Shipper 30 days in advance of the

applicable deadline. In the notice TransColorado will specify the

information Shippers need to provide to exercise their right of first

refusal.

7.2 TransColorado shall post on the Informational Postings portion

of the Interactive Website the terms and conditions of the available

capacity under the expiring contract as follows:

(a) CD stated in Dth/day.

(b) Receipt and delivery points at which capacity is

available and the firm quantities at such points.

(d) Term.

(e) Applicable rates for the service.

(f) Minimum conditions.

(g) The criteria by which bids are to be evaluated.

(h) That the capacity is subject to right of first refusal.

7.3 Capacity will be made available on a nondiscriminatory basis

and will be assigned on the basis of a bid period determined pursuant to

the open season periods provided for in Section 6 of the General Terms and

Conditions.

(a) A Shipper desiring to acquire the available capacity

shall place a bid with TransColorado, through the Interactive Website or

in writing, during the bid period. The bid shall be binding once received

by TransColorado and may not be withdrawn by the Bidding Shipper.