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Original Sheet No. 257H Original Sheet No. 257H : Superseded

GENERAL TERMS AND CONDITIONS

20. SYSTEM OPERATION - (Continued)

(b) In applying this Section, TransColorado shall operate its

system on a non-discriminatory manner, without regard to the source of

supply, the identity or nature of any Shipper or the identity of any

entity tendering or receiving gas except as otherwise explicitly provided

herein.

20.10 Liability.

(a) TransColorado shall not be liable to any person for the

manner in which it operates its system, or for any diversion of gas or

capacity rights or any other adverse consequences to such person that may

result from its actions, provided that TransColorado's actions were

undertaken in furtherance of and in accordance with this Section 20 and

provided further that such adverse consequences are not attributable to

TransColorado's negligence or misfeasance.

(b) Compliance with the OFOs and the other terms and

conditions of TransColorado's FERC Gas Tariff is essential to provide

deliveries and services under all rate schedules. A failure by one or

more Shippers to comply with the OFOs may affect TransColorado's ability

to provide such deliveries and services. In such event and in addition to

other provisions hereof and not in lieu of any other remedies available in

law or at equity, TransColorado will, except for negligence or undue

discrimination, have no liability.

(c) In the event a Shipper's gas supplies are diverted to

another Shipper or retained by TransColorado as a result of an OFO, the

party receiving such gas supplies shall compensate the Shipper whose gas

was diverted or retained at the San Juan Basin spot price of gas, as

determined in Section 12.3 of these General Terms and Conditions. Should

reduced deliveries result from the issuance of an OFO, TransColorado shall

provide reservation charge credits to Shippers reflecting such reduced

deliveries.

20.11 Reporting. Within 90 days after an OFO has been lifted,

TransColorado will post on its Internet Web Site a report that describes

the specific operational factors which caused the OFO to be issued and

then lifted.