TransColorado Gas Transmission Company

Original Volume No. 1

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

Second Revised Sheet No. 246A Second Revised Sheet No. 246A : Superseded

Superseding: First Revised Sheet No. 246A

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS (Continued)

In determining imbalances, TransColorado shall take into

consideration (a) quantities retained for fuel and lost and unaccounted-

for gas and (b) additional quantities transported pursuant to any agreed-

upon action. TransColorado and Shipper may mutually agree to offset

excess or deficient quantities delivered under other Transportation

Service Agreements between TransColorado and Shipper.

All cashout charges shall be invoiced according to Section 13 to

these General Terms and Conditions.

12.8 Third Party Imbalance Management. TransColorado will allow

Shippers to obtain imbalance-management service from a third-party

provider (TPP) subject to the following:

(a) All transactions involving the physical payback of gas or

trading of imbalances on TransColorado's system must comply with the terms

and conditions of TransColorado's tariff.

(b) The trading or curing of imbalances may only involve

procedures that are provided for in TransColorado's tariff.

manner that will increase a Shipper's imbalance on TransColorado's system.

(d) Trading of imbalances may only be between imbalances on

TransColorado's system.

(e) When a Shipper desires to physically repay or take

deliveries of gas, either the Shipper or the TPP must have the necessary

transportation receipt and delivery point capacity to allow for the

delivery of the gas.

(f) Neither the Shipper nor the TPP may transport or trade

gas to which they do not hold title.

(g) Shipper shall remain primarily liable for its imbalances

under the provisions of this Section 12.

(h) The TPP will not be permitted to act as a Shipper's agent

until TransColorado has received written notice from Shipper. Shippers

agree to be bound by all transactions conducted by the TPP in the

Shipper's name.