TransColorado Gas Transmission Company

Original Volume No. 1

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

Second Revised Sheet No. 229 Second Revised Sheet No. 229 : Superseded

Superseding: First Revised Sheet No. 229

GENERAL TERMS AND CONDITIONS

7. RIGHT OF FIRST REFUSAL PROCEDURE (Continued)

(b) The Bidding Shipper's bid must include all information

required by Section 5 of these General Terms and Conditions of this

Tariff.

7.4 TransColorado shall not be obligated to accept any bid for the

capacity at less than the maximum applicable tariff rate or for a term

greater than 20 years. Upon acceptance of a bid, TransColorado shall

inform the existing Shipper of the terms of the bid to permit the Shipper

to exercise its right of first refusal. A Shipper exercising its right of

first refusal must match the highest bid but only up to the maximum term

of five years. The existing Shipper shall have five days to inform

TransColorado that it agrees to match the bid.

If the existing Shipper notifies TransColorado that it elects

to match the terms of price and duration of the accepted bid,

TransColorado shall contract with the existing Shipper. If the existing

Shipper does not elect to match the terms of the Acquiring Shipper's bid,

TransColorado will contract with the Acquiring Shipper according to the

terms and conditions of the Tariff.

7.5 If no bids are received and the existing Shipper is willing to

pay the maximum rate, the existing Shipper will be entitled to continue to

receive service for whatever term it chooses. At the end of the term, the

existing Shipper may again exercise its right of first refusal to retain

the capacity.

7.6 Any shipper that acquires available capacity according to this

section will not be required to repeat the bidding procedures outlined in

Section 5 of this Tariff.

7.7 If TransColorado and an existing Shipper enter into a new

contract to continue service that was not subject to an evergreen clause

or the right of first refusal procedure, the bidding requirements included

in Section 5 of these General Terms and Conditions shall apply.