TransColorado Gas Transmission Company

Original Volume No. 1

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

Fourth Revised Sheet No. 262 Fourth Revised Sheet No. 262 : Superseded

Superseding: Third Revised Sheet No. 262

GENERAL TERMS AND CONDITIONS

23. NEGOTIATED RATES

23.1 Applicability. Notwithstanding anything to the contrary

contained in this Tariff, TransColorado may charge a negotiated rate for

service under any rate schedule contained in this Tariff to any Shipper

that has access to service at the rates set forth in the applicable rate

schedule as shown on the effective Statement of Rates (recourse rates),

and agrees to pay the negotiated rate.

23.2 Definition. A negotiated rate shall mean a rate for service,

where one or more of the individual rate components exceed the maximum

charge, or are less than the minimum charge, for such components. This

definition shall include a rates: (1) derived by a formula where one or

more of the individual rate components may exceed the maximum charge, or

may be less than the minimum charge; (2) based on a rate design other than

Straight Fixed-Variable (SFV), and (3) that include a minimum volume.

23.3 Conditions. Implementation of a negotiated rate shall be

subject to the following conditions:

(a) TransColorado and Shipper have executed a valid

Transportation Service Agreement to implement negotiated rate(s).

(b) Shipper had access to service pursuant to this FERC Gas

Tariff at the rates set forth on the Statement of Rates at the time of the

execution of the Transportation Service Agreement implementing negotiated

rate(s).

Commission of such agreement. The numbered tariff sheet will state the

exact legal name of the Shipper, the negotiated rate, other applicable

charges, the receipt and delivery points, the volume of gas to be

transported and the applicable rate schedule for service provided at a

negotiated rate. The tariff sheet will include a statement affirming that

the negotiated rate agreement does not deviate in any material aspect from

the applicable form of service agreement or TransColorado will file the

agreement pursuant to Section 154.112(b) of the Commission's Regulations.

23.4 Bidding for Firm Capacity. TransColorado and Shipper may

negotiate and post for competitive bidding, a rate that exceeds the

applicable maximum reservation rate. If competing bids under Section 5.3

of these General Terms and Conditions reflect different rate forms, i.e.,

negotiated rates vs. recourse rates, TransColorado shall award the

capacity, or portion thereof, using the evaluation criteria of Section

6.10 of these General Terms and Conditions; the negotiated reservation

charge reflected in such evaluation criteria cannot exceed the maximum

applicable recourse rate. TransColorado will calculate this value based

only on the reservation charge or similar guaranteed revenue stream.