TransColorado Gas Transmission Company

Original Volume No. 1

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Effective Date: 09/01/2002, Docket: RP02-398-000, Status: Effective

Third Revised Sheet No. 247A Third Revised Sheet No. 247A : Superseded

Superseding: Substitute Second Revised Sheet No. 247A

GENERAL TERMS AND CONDITIONS

12. BALANCING OF GAS (Continued)

(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

II transmission receipt quantities for the month, two months previous to

the projected month, as adjusted for anticipated changes in system

operations.

(ii) Projected monthly system gas consumption.

Projected transmission system gas consumption will be based on the actual

fuel consumed at each compressor station, extraction plant or other fuel

consuming facility for the month, two months previous to the projected

month, as adjusted for anticipated changes in system operations divided by

projected monthly scheduled Phase II transportation receipt quantities.

Projected monthly scheduled transportation receipts will be based on the

scheduled transmission receipt quantities for the month, two months

previous to the projected month, as adjusted for anticipated changes in

system operations (excluding any quantities associated with the

transactions listed under § 12.9(d).

(iii) Phase I and Phase II transportation identified in

§ 12.9(d) prior 12 months ending December 31 variance adjustment. The

variance adjustment for each 12 months ending December 31 shall be: the

sum of Phase I and § 12.9(d) shippers' proportionate share of the 12

months' lost or gained and unaccounted-for quantities, less the sum of the

12 months' Phase I and § 12.9(d) shippers'FGRP quantity collected, as

adjusted to exclude the variance adjustment component of the FGRP plus the

unamortized balance of the prior April 1 through March 31 amortization

period; all divided by actual Phase I and § 12.9(d) shippers=annual

transportation volumes for the 12 months ended December 31, as adjusted

for anticipated changes in system operations. Monthly variances will be

accumulated in the appropriate accounts. The variance adjustment

component of the FGRP will be used to amortize the previous 12 months

ended December 31 variance account balance over the 12-month period April

1 through March 31.

(iv) Phase II prior 12 months ending December 31

variance adjustment. The Phase II variance adjustment for each 12 months

ending December 31 shall be: the sum of the 12 months' actual monthly gas

consumption and lost or gained and unaccounted-for quantities; less the