TransColorado Gas Transmission Company

Original Volume No. 1

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

Third Revised Sheet No. 265 Third Revised Sheet No. 265 : Superseded

Superseding: Second Revised Sheet No. 265

GENERAL TERMS AND CONDITIONS

26. SEGMENTATION

(a) A Shipper may segment its firm capacity to the extent

operationally feasible. In addition, any Shipper may segment its firm

capacity in releasing to a Replacement Shipper to the extent operationally

feasible. A Shipper segmenting its own firm capacity shall effectuate

such segmentation through the nomination process under this Section 26. A

Shipper may release firm capacity on a segmented basis to the extent

consistent with this Section 26 by following the procedures set out in

Section 6 of these General Terms and Conditions.

(b) For the purposes of this Section 26, a segmentation of

firm capacity (whether of Shipper's own capacity or on release) shall be

deemed operationally feasible unless: (i) the segmentation would result in

an increase in firm contractual obligation by TransColorado on any segment

or portion of its system; or (ii) the segmentation would result in a

physical haul in a direction opposite to the primary path under the

Agreement being segmented, absent a determination by TransColorado, which

determination will be made within ten (10) business days of the request,

that it can physically perform the segmentation as requested;

upstream path segment shall receive priority at all secondary points

upstream of the break point and the downstream path segment shall receive

priority at all secondary points downstream of the break point.

(d) Shippers may request to segment outside their primary

path to the extent that such a request to segment does not (a) adversely

impact Shippers' rights to access secondary points in accordance with the

General Terms and Conditions of this tariff or (b) adversely impact

TransColorado's ability to perform its contractual obligations to all

Shippers. If TransColorado determines that it may perform such

segmentation, Shippers shall have priority of service in accordance with

Section 8.1(a)(ii)(2) of these General Terms and Conditions.

(e) If TransColorado determines that it is operationally

feasible, the Shipper (or Replacement Shipper in the case of a release)

may nominate service at Receipt and Delivery Points for the path segment

that results in a reverse flow from the original path, subject to the

discount policy stated in Section 26(f) below.

(f) Subject to the availability of firm capacity at the

primary points, a Shipper, a Replacement Shipper or a Subreplacement

Shipper may change the primary Receipt or Delivery Points listed in the