TransColorado Gas Transmission Company

Original Volume No. 1

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Effective Date: 07/01/2002, Docket: RP02-328-000, Status: Effective

Second Revised Sheet No. 227H Second Revised Sheet No. 227H : Superseded

Superseding: First Revised Sheet No. 227H





(b) Credit applications shall be completed in full with all

information required to establish creditworthiness under the credit

criteria included in Section 18 of these General Terms and Conditions.

Should a potential bidder fail to satisfy such credit criteria, the

potential bidder may still become a Qualified Bidder by providing a

prepayment, letter of credit, or other good and sufficient security

satisfactory to TransColorado as further set forth in Section 18 of these

General Terms and Conditions.


(c) Based on TransColorado's continuing review of a

Shipper's financial records, TransColorado shall have the right to amend a

Shipper's line of credit and lower or increase the quantity and term.


(d) TransColorado's determination of a Shipper's

creditworthiness is solely for TransColorado's purposes under

TransColorado's Tariff and such determination is neither a representation

nor a guarantee to a Releasing Shipper or any other entity as to the

ability of a Replacement or Subreplacement Shipper to pay any outstanding

amount under a Released Firm Transportation Agreement.


6.16 Compliance by Shipper. By acquiring released capacity, a

Shipper agrees that it will comply with all provisions of TransColorado's

Tariff and all applicable Commission orders, rules and regulations. Such

Shipper also agrees to be responsible to TransColorado for compliance with

all applicable terms and conditions of TransColorado's Tariff, as well as

the terms and conditions of the Released Firm Transportation



6.17 Obligations of Releasing Shipper.


(a) The Releasing Shipper shall continue to be liable and

responsible for all reservation charges associated with the released

capacity up to the reservation charge specified in such Releasing

Shipper's Agreement with TransColorado. The Releasing Shipper agrees that

the award of capacity to a Replacement Shipper or Subreplacement Shipper

shall automatically reduce the Releasing Shipper's firm capacity rights

under the Agreement with TransColorado effective on the effective date of

the release for the period of the release, except for any period that the

firm capacity is recalled by the Releasing Shipper (if the successful bid

so permits) until such capacity is reput to the Replacement or

Subreplacement Shipper, in accordance with this Section 6.


(b) A release by a Replacement Shipper shall not relieve the

Original Shipper or the Replacement Shipper of their obligations under

this Section 6.