Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-167-000, Status: Effective

Original Sheet No. 280 Original Sheet No. 280 : Effective




12. BALANCING OF GAS (Continued)


12.10 Credit of Cashout Revenues. Any cashout revenues that

exceed gas purchase and applicable costs will be credited to firm,

interruptible and negotiated-rate Shippers. The credits shall be calculated

by dividing the actual reservation and commodity revenues for each Shipper by

the total reservation and commodity revenues during the reporting period and

multiplying the result by the excess cashout revenues. The reservation and

commodity revenues used to calculate the refund allocation factor shall be net

of all applicable surcharges, including, but not limited to, ACA and GRI

surcharges. The reporting period shall be the annual period of January

through December. If gas purchase and applicable costs exceed revenues, the

costs exceeding revenues will be rolled into subsequent annual costs, as an

offset to revenues, until eliminated.


12.11 Third Party Imbalance Management. TransColorado will allow

Shippers to obtain imbalance-management service from a third-party provider

(TPP) subject to the following:


A. All transactions involving the physical payback of gas or

trading of imbalances on TransColorado's system must comply with the terms and

conditions of TransColorado's tariff.


B. The trading or curing of imbalances may only involve

procedures that are provided for in TransColorado's tariff.


C. Shippers will not be permitted to trade imbalances in any

manner that will increase a Shipper's imbalance on TransColorado's system.


D. Trading of imbalances may only be between imbalances on

TransColorado's system.


E. When a Shipper desires to physically repay or take

deliveries of gas, either the Shipper or the TPP must have the necessary

transportation receipt and delivery point capacity to allow for the delivery

of the gas.


F. Neither the Shipper nor the TPP may transport or trade gas

to which they do not hold title.