TransColorado Gas Transmission Company

Original Volume No. 1

Effective Date: 08/01/2001, Docket: RP01-477-000, Status: Effective

Fourth Revised Sheet No. 246 Fourth Revised Sheet No. 246 : Superseded

Superseding: Third Revised Sheet No. 246

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS (Continued)

reported in the publications listed below, starting with the issue dated

on or after TransColorado's nomination deadline for the first of the month

service for that month, and the subsequent issues dated prior to

TransColorado's nomination deadline for the following month's first of the

month service.

(i) For gas owed TransColorado, the Inside FERC's Gas

Market Report, first of the month index for El Paso Natural Gas, San Juan

Basin, as published by McGraw-Hill Companies, will apply to the negative

imbalance for the month in which the imbalance occurred.

(ii) For gas owed the Shipper, the Inside FERC's Gas

Market Report, first of the month index for Questar Pipeline Co., Rocky

Mountain Index, as published by McGraw-Hill Companies, will apply to the

positive imbalance for the month in which the imbalance occurred.

(d) Following the ten-day period for offsetting imbalances,

Shippers with remaining imbalances shall pay TransColorado or will be

credited with the appropriate cashout amounts, unless otherwise agreed to

in writing by TransColorado.

(e) In the event Inside FERC's Gas Market Report ceases to

publish entirely or fails to publish the index prices listed in subsection

(i) For gas owed TransColorado, the highest of the

Midpoint prices for New Mexico San Juan Basin, El Paso, Non-Bondad, for

each week (or the superseding reference if the publication titling is

revised), as published in Gas Daily, as published by Financial Times

Energy will apply for make-up of gas of any negative imbalance for the

month in which the imbalance occurred.

(ii) For gas owed the Shipper, the lowest of the

Midpoint prices, for Rockies, Questar, for each week (or the superseding

reference if the publication titling is revised), as published in Gas

Daily, as published by Financial Times Energy will apply for make-up of

gas of any positive imbalance for the month in which the imbalance

occurred.

12.7 Assessment of Imbalances. TransColorado will not assess

imbalances if (a) Shipper's action is excused by force majeure, (b)

TransColorado has invoked force majeure, (c) imbalances are caused by

TransColorado or result from TransColorado's error or (d) TransColorado

has previously imposed and Shipper has previously paid imbalance charges

on the quantities of gas comprising the imbalance amount.