TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 257F Original Sheet No. 257F : Superseded

GENERAL TERMS AND CONDITIONS

20. SYSTEM OPERATION - (Continued)

(j) Notice and posting shall include but not be limited to

(i) mandated specific actions, (ii) indication of voluntary actions, (iii)

identification of the parties subject to the OFO, (iv) the time the OFO

will become effective, (v) the estimated duration of the OFO, (vi) whether

TransColorado is overdelivered or underdelivered, (vii) whether actual net

receipts need to be equal to or greater than actual deliveries or actual

deliveries need to be equal to or greater than actual net receipts, (viii)

whether or not authorized overruns are acceptable and (ix) 24 hour contact

number for TransColorado during the duration of the OFO.

(k) In addition to the OFOs described in subsections (a-j)

above, TransColorado may issue OFOs as follows:

(i) In order to improve system operations,

TransColorado may require any Shipper that has a variance of twenty

percent(20%) or more between actual deliveries to TransColorado at a

Receipt Point and the confirmed nomination at that Receipt Point to

conform the deliveries to the confirmed nomination as of the day that

commences with the effectiveness of the OFO.

(ii) TransColorado may also require Shippers to keep

any variances between actual flows and confirmed nominations at all of the

Receipt Points or Delivery Points under each Shipper's Agreements, which

are to the detriment of TransColorado's system, within a ten percent (10%)

tolerance. If a Shipper agrees to keep all other Shippers at a Delivery

Point whole with their nominations (Swing Shipper), such other Shippers'

confirmed nominations and actual takes at that point will be included in

the total confirmed nominations and the total actual deliveries of the

Swing Shipper at all Delivery Points for the purposes of determining the

Swing Shipper's variance.

(iii) A Shipper shall not be subject to overrun

penalties and charges from TransColorado or imbalance charges with respect

to any action taken in conformance with an OFO issued by TransColorado

during a Critical or non-Critical Time.

20.6 Unilateral Action. In the event that the actions under Sections

20.3 through 20.5 are inadequate or there is insufficient time to carry

out such procedures, TransColorado may periodically have to take

unilateral action to maintain system pressure and preserve the overall

operational integrity of TransColorado's system (or any portion thereof).

TransColorado is authorized to use all the resources of its system to such