TransColorado Gas Transmission Company

Original Volume No. 1

Effective Date: 10/01/2002, Docket: RP02-460-000, Status: Effective

Third Revised Sheet No. 244 Third Revised Sheet No. 244 : Superseded

Superseding: Second Revised Sheet No. 244

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS

12.1 General Provision. Shipper shall monitor and control its

receipts and deliveries of gas and, if necessary, make appropriate

adjustments in order to maintain a thermal balance of receipts and

deliveries. TransColorado shall not be obligated to receive or deliver gas

that differs from the confirmed nomination between Shipper and

TransColorado.

TransColorado shall monitor, to the extent of its ability,

receipts and deliveries of gas as compared to quantities nominated by

Shipper, and, based upon available information, advise Shipper of any

imbalances. Upon notification, Shipper shall be obligated to adjust its

receipts and deliveries to correct or avoid any imbalance between

nominations and actual receipt or delivery. Any adjustment to receipts

and deliveries by Shipper, whether or not pursuant to notification from

TransColorado, shall be coordinated with TransColorado's gas

representatives and in accordance with the TransColorado's scheduling

procedures.

12.2 Balancing Upon Termination. In the event the quantities of

gas received and delivered are not in balance at the end of the term of

the service agreement, then such balance shall be achieved at the earliest

practicable date, not to exceed 45 days after the imbalance is determined

by extending receipts or deliveries, as applicable, at the appropriate

point(s) of receipt or point(s) of delivery, until such balance is

achieved, or by such other method as is then mutually agreed upon by

TransColorado and Shipper.

12.3 Maintenance of System Integrity. Nothing in this section

limits TransColorado's right to take action that may be required to adjust

receipts and deliveries of gas in order to alleviate conditions that

threaten the integrity of its system, including maintenance of service to

higher-priority customers.

12.4 Imbalances with the Other Parties. TransColorado shall not be

responsible for eliminating any imbalances between Shipper and any third

party. Furthermore, TransColorado shall not be obligated to adjust or

deviate from its standard operating and accounting procedures in order to

alleviate any such imbalances.

12.5 Netting and Trading

(a) Imbalances under a Shipper's different Agreements will be

netted together to obtain the Shipper's Total Monthly Imbalance. The

Total Monthly Imbalance will be shown with the monthly billings sent to

Shippers.