TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 246B Original Sheet No. 246B : Superseded

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS (Continued)

12.9 Netting and Trading

(a) Within twenty days after month end, TransColorado will

notify Shipper of its monthly imbalance. Imbalances may be traded and

netted as long as it reduces the imbalance to TransColorado.

(b) If trading among Shipper's transportation agreements on

the same system are not used to cure the imbalance, the Shipper's

imbalance will be posted on the Informational Postings portion of

TransColorado's Interactive Website, unless Shipper requests that postings

not be made, and for the remainder of that month, or at least ten days,

those imbalances may be traded or netted. To consummate a trade, both

trading parties must inform TransColorado via the electronic bulletin

board or fax of their agreement to trade and their desire for

TransColorado to offset the imbalances. Trades will be permitted as long

as the Shippers have imbalances in opposite directions. After receiving

notices from both trading parties, TransColorado will reflect the trade by

posting adjusted imbalances on the Informational Postings portion of

TransColorado's Interactive Website,

12.10 Unauthorized Overrun

(a) TransColorado shall levy a charge to any Operator that

exceeds the limits specified below. Such charge is applicable in times of

capacity constraints, or when Operators act in a manner that materially

threatens the integrity of TransColorado's System (e.g. under-performance

or over-performance that causes significant pressure declines or

buildups).

(b) On any day TransColorado determines that it is unable to

receive or deliver the total volume of gas scheduled on its System or a

portion of its System, it shall have the right to notify all Operators of

a Critical System Alert. Contemporaneously with, or shortly following

such notice, TransColorado shall give notice to any Operator that would be

subject to an Unauthorized Overrun Charge as provided below.

(c) The quantity of gas subject to such charge is the

quantity of gas that varies from the amount scheduled at that receipt or

delivery point on such days.

(d) Upon receipt of a notification from TransColorado, the

Operator shall, within four hours, reduce takes to a level no more than 5%

above the scheduled volume for such day or 50 Dth, whichever is larger.

If after the four hour notice period: