TransColorado Gas Transmission Company

Original Volume No. 1

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

Ninth Revised Sheet No. 247 Ninth Revised Sheet No. 247 : Superseded

Superseding: Eighth Revised Sheet No. 247

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS (Continued)

(e) TransColorado shall notify Operators each day during a

Critical System Alert via the Informational Postings portion of its

Interactive Website that the situation continues to exist.

12.11 Fuel Gas Reimbursement. For all gas tendered by shipper for

transportation under Rate Schedules FT, IT, or negotiated rate agreements,

Shipper shall reimburse TransColorado in kind as posted on its EBB, for

gas consumed in transmission-system operations and for lost-

and-unaccounted-for gas. Effective April 1, 2001, TransColorado shall

assess Phase I shippers that entered into contracts after March 31, 2001,

for their proportionate share of lost or gained and unaccounted-for gas.

TransColorado shall be at risk for the lost and unaccounted-for gas

properly allocable to shippers that entered into contracts on or before

March 31, 2001, for service in TransColorado's Phase I facilities. Phase

II shippers will reimburse TransColorado for gas consumed in transmission-

system operations and for lost-and-unaccounted-for gas. The fuel-gas

reimbursement percentage (FGRP), initially 1.0%, shall be applied to

quantities of gas tendered by shipper. Shipper's total receipt-point

nominations must include the amount of gas equal to the FGRP.

TransColorado shall post on its EBB a revised FGRP five days in advance of

the first of each month to be effective during the month. TransColorado

shall have the right to adjust the FGRP to reflect the actual quantity of

gas used by TransColorado so as not to create an imbalance on its system.

The FGRP for Phase I and Phase II shippers will include two components:

(1) lost or gained and unaccounted-for quantities, and (2) prior 12-months

ending December 31 variance adjustment, that includes unamortized or over-

amortized quantities from the preceding April 1 through March 31 12-month

amortization period. The FGRP for Phase II will include as a third

component, system gas consumption.

(a) The monthly FGRP for Phase I shippers that entered into

contracts after March 31, 2001, will be calculated using the most recent

available actual data and will be equal to (i) plus (iii) of this section.

The monthly FGRP for Phase II shippers will be calculated using the most

recent available actual data and be equal to (i) plus (ii)plus (iv)of this

section.

(i) Projected monthly lost and unaccounted-for

component of the FGRP will equal (i)(1) divided by (i)(2):

(1) Projected transmission system losses or

gains and unaccounted-for quantities will be calculated by subtracting the

physical transmission deliveries for the month, two months previous to the

projected month, including actual system gas consumed, from corresponding

physical transmission receipts as adjusted for anticipated changes in

system operations.

(2) Projected monthly scheduled Phase I and II

transportation receipt quantities. Projected monthly scheduled

transportation receipts will be based on the scheduled Phase I and Phase