TransColorado Gas Transmission Company

Original Volume No. 1

Effective Date: 12/01/2003, Docket: RP00-459-002, Status: Effective

Fourth Revised Sheet No. 228 Fourth Revised Sheet No. 228 : Superseded

Superseding: Third 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 12 consecutive months or greater

at the maximum tariff rate, or multi-year seasonal maximum-rate contracts

for services not offered for a full 12 months, Shipper shall have a right

of first refusal to extend service under a new service agreement.

Shippers with firm service at discounted rates or negotiated-rate Shippers

with contracts entered into prior to March 26, 2000, with a term equal to

or greater than one year retain the right of first refusal. However, any

such grandfathered service agreement thereafter shall extend at the

maximum rate for twelve or more consecutive months of service or for a

term of more than one year for service not available for twelve

consecutive months in order to retain its ROFR beyond the extended term.

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 these 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.