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Original Sheet No. 257G Original Sheet No. 257G : Superseded

GENERAL TERMS AND CONDITIONS

20. SYSTEM OPERATION - (Continued)

ends, through the integrated operation of line pack, and supply received

into TransColorado's system, even though gas may be owned by a person

other than the entity receiving delivery. TransColorado shall not,

however, be responsible as a supplier of gas to any Shipper.

20.7 Applicability of Actions. In exercising its authority

pursuant to Sections 20.3 through 20.6, TransColorado shall generally

direct its actions to Shippers in the following sequence, to the extent

such actions and/or sequencing will tend to alleviate the situation to be

addressed:

(a) First, to any Shipper that has been identified to take

action and is causing disruption due to its failure to maintain receipts

and deliveries in balance or to match physical flows with nominated

receipts or deliveries;

(b) Second, to any Shipper that has been identified to take

action and has failed or is failing to take action to anticipate a change

in demand (i.e., a temperature sensitive LDC or end user failing to

respond to changes in weather);

(c) Third, to any Shipper that has been identified to take

action and is operating in a manner that conflicts with sound operational

practices in relation to TransColorado's system; and

(d) Lastly, to all other Shippers.

20.8 Refund of Penalty Amounts. All amounts collected by

TransColorado for OFO penalties shall be refunded consistent with Section

12.11 of these General Terms and Conditions.

20.9 Standards.

(a) In issuing OFOs or taking other operational control

action under this Section, TransColorado shall apply consistent and

objective engineering and operational criteria to define the overall

operational integrity of the system and acceptable pressure levels to be

maintained, to evaluate the imminent nature of any threat to these

factors, and to determine what steps are necessary to preserve such

factors. Such criteria may be changed from time to time as operating

experience indicates.