TransColorado Gas Transmission Company

Original Volume No. 1

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

Second Revised Sheet No. 257 Second Revised Sheet No. 257 : Superseded

Superseding: First Revised Sheet No. 257

GENERAL TERMS AND CONDITIONS

20. SYSTEM OPERATION

20.1 General.

(a) TransColorado shall endeavor to maintain adequate

pressure throughout its system and to preserve the overall

operational integrity of its system; provided, however, that TransColorado

shall not be obligated to buy or sell gas or to install additional

compression or otherwise modify its system for these purposes. Operating

personnel for Shippers and other entities that are physically taking

delivery of gas from TransColorado or tendering gas to TransColorado shall

cooperate with TransColorado in furtherance of this Section. Each Shipper

shall designate the e-mail, telephone and fax numbers of one or more

persons (but not more than two (2) primary and two (2) backup persons) for

TransColorado to contact on operating matters (including the receipt of

Operational Flow Orders and notices of a Critical Time consistent with

Section 20.5) at any time, on a 24-hour a day, 365-days a year basis. Such

contact persons must have adequate authority and expertise to deal with

such operating matters.

(b) For the purpose of these General Terms and Conditions,

the overall operational integrity of TransColorado's system shall

encompass the integrity of the physical system and the preservation of

physical assets and their performance, the overall operating performance

of the entire physical system as an entity (or any portion thereof), and

the maintenance (on a reliable and operationally sound basis) of total

system deliverability and the quality of gas delivered.

20.2 Facility Control. TransColorado shall maintain actual physical

and operational control of all transmission and other facilities on its

system.

20.3 Operational Control Sequence. In the event TransColorado's

observations or projections indicate that a situation is or may be

developing in which adequate pressures may not be maintained or the

overall operational integrity of its system (or any portion thereof) could

be threatened, or in the event that such a situation actually occurs,

TransColorado is authorized by this Section to take action to alleviate

this situation. In responding to such a situation, TransColorado shall

first apply the Advisory Actions procedures of Section 20.4. If such

measures are not sufficient in TransColorado's