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UNITED STATES


SECURITIES AND EXCHANGE COMMISSION







Form 10-K


(Mark One)


x


ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF


THE SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2004


OR


o


TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period
from        to


Commission file number 1-4874


Colorado Interstate Gas Company




|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                           |  | 84-0173305                              
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)
|                                                                  
|El Paso Building                                                   |  |                                         
|1001 Louisiana Street
    Houston, Texas                           |  | 77002                                   
|(Address of principal executive offices)                           |  | (Zip Code)                              

Telephone number:  (713) 420-2600


Securities registered pursuant to Section 12(b) of the
Act:


|                                  |  |  |  |  |  |                                          
|--------------------------------- |  |  |  |  |  | -----------------------------------------
|Title of each class               |  |  |  |  |  | Name of each exchange on which registered
|                                  |  |  |  |  |  |                                          
|10% Senior Debentures, due 2005   |  |  |  |  |  |                                          
|                                  |  |  |  |  |  | New York Stock Exchange                  
|                                 
|6.85% Senior Debentures, due 2037 |  |  |  |  |  |                                          

Securities registered pursuant to Section 12(g) of the
Act: None


þ o


þ


o þ


State the aggregate market
value of the voting stock held by non-affiliates of the
registrant:     None


Indicate the number of shares
outstanding of each of the registrants classes of common
stock, as of the latest practicable date.




COLORADO INTERSTATE GAS COMPANY
MEETS THE CONDITIONS OF GENERAL INSTRUCTION I(1)(a) AND (b)
TO FORM 10-K AND IS THEREFORE FILING THIS REPORT WITH A
REDUCED DISCLOSURE FORMAT AS PERMITTED BY SUCH INSTRUCTION.


Documents incorporated by reference: None










---










COLORADO INTERSTATE GAS COMPANY


TABLE OF CONTENTS


|                                             |  |                                                                                                                      |  |                                                                                                                                                    |    |  |    | 
|-------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------- | -- |  | -- | 
|                                             |  | Caption                                                                                                              |  | Page                                                                                                                                               |   
|                                             |  |                                                                                                                      |  |                                                                                                                                                    |   
|PART I                                      
|Item 1.                                      |  | Business                                                                                                             |  |                                                                                                                                                    | 1  | 
|Item 2.                                      |  | Properties                                                                                                           |  |                                                                                                                                                    | 4  | 
|Item 3.                                      |  | Legal Proceedings                                                                                                    |  |                                                                                                                                                    | 4  | 
|Item 4.                                      |  | Submission of Matters to a Vote of Security
    Holders                                                              |  |                                                                                                                                                    | *  | 
|PART II                                     
|Item 5.                                      |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  |                                                                                                                                                    | 4  | 
|Item 6.                                      |  | Selected Financial Data                                                                                              |  |                                                                                                                                                    | *  | 
|Item 7.                                      |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  |                                                                                                                                                    | 5  | 
|                                             |  |                                                                                                                      |  | Risk Factors and Cautionary Statement for
    Purposes of the Safe Harbor Provisions of the
    Private Securities Litigation Reform Act of 1995 |    |  | 10 | 
|Item 7A.                                     |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |  |                                                                                                                                                    | 15 | 
|Item 8.                                      |  | Financial Statements and Supplementary
    Data                                                                      |  |                                                                                                                                                    | 16 | 
|Item 9.                                      |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  |                                                                                                                                                    | 36 | 
|Item 9A.                                     |  | Controls and Procedures                                                                                              |  |                                                                                                                                                    | 36 | 
|Item 9B.                                     |  | Other Information                                                                                                    |  |                                                                                                                                                    | 37 | 
|PART III                                    
|Item 10.                                     |  | Directors and Executive Officers of the
    Registrant                                                               |  |                                                                                                                                                    | *  | 
|Item 11.                                     |  | Executive Compensation                                                                                               |  |                                                                                                                                                    | *  | 
|Item 12.                                     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |  |                                                                                                                                                    | *  | 
|Item 13.                                     |  | Certain Relationships and Related
    Transactions                                                                   |  |                                                                                                                                                    | *  | 
|Item 14.                                     |  | Principal Accountant Fees and Services                                                                               |  |                                                                                                                                                    | 37 | 
|PART IV                                     
|Item 15.                                     |  | Exhibits and Financial Statement
    Schedules                                                                       |  |                                                                                                                                                    | 38 | 
|                                             |  |                                                                                                                      |  | Signatures                                                                                                                                         |    |  | 42 | 
|Indenture                                   
|First Supplemental Indenture                
|Certification of CEO pursuant to Section 302
|Certification of CFO pursuant to Section 302
|Certification of CEO pursuant to Section 906
|Certification of CFO pursuant to Section 906








|  |                                                                                                                                                                                               
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | We have not included a response to this item in this document
    since no response is required pursuant to the reduced disclosure
    format permitted by General Instruction I to Form 10-K.



|     |  |                                
|---- |  | -------------------------------
|/d   |  | = per day                      
|BBtu |  | = billion British thermal units
|Bcf  |  | = billion cubic feet           
|MMcf |  | = million cubic feet           
|MDth |  | = thousand dekatherms          





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PART I





ITEM 1. BUSINESS


General




The Pipeline System.


Storage Facilities.


Regulatory Environment






| |   |                                                              
| | - | -------------------------------------------------------------
| |  | rates and charges for natural gas transportation and storage;
|
| |  | certification and construction of new facilities;            
|
| |  | extension or abandonment of services and facilities;         
|
| |  | maintenance of accounts and records;                         
|
| |  | relationships between pipeline and energy affiliates;        
|
| |  | terms and conditions of services;                            
|
| |  | depreciation and amortization policies;                      
|
| |  | acquisition and disposition of facilities; and               
|
| |  | initiation and discontinuation of services.                  





1



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Markets and Competition










2



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|                                                                                                                                                                                             |  |                                                                                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Customer Information                                                                                                                                                                         |  | Contract Information                                                                                                                                                                                                                |  | Competition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                            
|Approximately 112 firm and  interruptible
    transportation  customers
    Major Customer:
    Public Service Company of  Colorado
    (PSCO)  (187 BBtu/d)  (970
    BBtu/d)  (261 BBtu/d) |  | Approximately 191 firm transportation contracts
    Weighted average remaining contract term: approximately
    five years
    Contract term expires in 2006
    Contract term expires in 2007
    Contract term expiring 2009-2014 |  | On-SystemWe face competition from an intrastate pipeline, a new
    proposed competing interstate pipeline and local production from
    the Denver-Julesburg basin, and long-haul shippers who elect to
    sell into this market rather than the off-system market, as well
    as alternative energy sources that generate electricity such as
    hydroelectric power, nuclear, coal and fuel oil.Off-SystemWe face competition from other existing pipelines and a new
    proposed competing interstate pipeline that are directly
    connected to our supply sources and transport these volumes to
    markets in the West, Northwest, Southwest and Midwest. We also
    face competition from alternative energy sources that generate
    electricity such as hydroelectric power, nuclear, coal and fuel
    oil.

Environmental




Employees




3



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ITEM 2. PROPERTIES









ITEM 3. LEGAL PROCEEDINGS




Natural Buttes.





ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS







PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES








ITEM 6. SELECTED FINANCIAL DATA




4



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS



Overview










|                |  |        |       |                  |                     |  |    | 
|--------------- |  | ------ | ----- | ---------------- | ------------------- |  | -- | 
|                |  |        |       | Percent of Total |                    
|                |  | MDth/d |       |                  | Contracted Capacity | 
|                |  |        |       |                  |                     | 
|2005            |  |        | 331   |                  |                     |  | 9  | 
|2006            |  |        | 529   |                  |                     |  | 15 | 
|2007            |  |        | 1,276 |                  |                     |  | 35 | 
|2008 and beyond |  |        | 1,470 |                  |                     |  | 41 | 

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Results of Operations






|                                                    |                                   |                      |       |     |      |   |       |     | 
|--------------------------------------------------- | --------------------------------- | -------------------- | ----- | --- | ---- | - | ----- | --- | 
|                                                    |                                   | 2004                 |       |     | 2003 |  
|                                                    |                                   |                      |       |     |      |  
|                                                    |                                   | (In millions, except |      
|                                                    |                                   | volumes amounts)     |      
|Operating revenues                                  |                                   | $                    | 284   |     |      | $ | 279   |    
|Operating expenses                                  |                                   |                      | (164  | )   |      |   | (120  | )  
|                                                    |                                   |                      |       |     |      |  
|                                                    | Operating income                  |                      |       | 120 |      |   |       | 159 | 
|Other income, net                                   |                                   |                      | 2     |     |      |   | 22    |    
|                                                    |                                   |                      |       |     |      |  
|                                                    | EBIT                              |                      |       | 122 |      |   |       | 181 | 
|Interest and debt expense                           |                                   |                      | (25   | )   |      |   | (24   | )  
|Affiliated interest income, net                     |                                   |                      | 15    |     |      |   | 10    |    
|Income taxes                                        |                                   |                      | (39   | )   |      |   | (64   | )  
|                                                    |                                   |                      |       |     |      |  
|                                                    | Income from continuing operations |                      |       | 73  |      |   |       | 103 | 
|Discontinued operations, net of income
    taxes(1) |                                   |                      |      |     |      |   | 8     |    
|                                                    |                                   |                      |       |     |      |  
|                                                    | Net income                        |                      | $     | 73  |      |   | $     | 111 | 
|                                                    |                                   |                      |       |     |      |  
|                                                   
|Throughput volumes
    (BBtu/d)(2)                  |                                   |                      | 1,744 |     |      |   | 1,685 |    
|                                                    |                                   |                      |       |     |      |  




|    |                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | During 2003, we reflected our production and field services
    businesses as discontinued operations. As of June 30, 2003,
    all assets classified as discontinued operations had been sold.
|   
|(2) | Throughput volumes include billable transportation throughput
    volume for storage activities.                                                                                               



|                                                              |                      |                         |    |   |         |   |    |       |   |   |        |     |   |   |     |     |  
|------------------------------------------------------------- | -------------------- | ----------------------- | -- | - | ------- | - | -- | ----- | - | - | ------ | --- | - | - | --- | --- | -
|                                                              |                      |                         |    |   |         |   |    | EBIT  |  
|                                                              |                      |                         |    |   |         |   |    |       |  
|                                                              |                      | Revenue                 |    |   | Expense |   |    | Other |   |   | Impact |    
|                                                              |                      |                         |    |   |         |   |    |       |   |   |        |    
|                                                              |                      | Favorable/(Unfavorable) |   
|                                                              |                      | (In millions)           |   
|Gas not used in operations and processing revenues            |                      | $                       | 16 |   |         | $ | (6 | )     |   | $ |       |     |   | $ | 10  |    
|Reduced transportation revenues                               |                      |                         | (4 | ) |         |   |   |       |   |   |       |     |   |   | (4  | )  
|Impact of the finalization of rate case settlement in 2003    |                      |                         | (4 | ) |         |   |   |       |   |   |       |     |   |   | (4  | )  
|Impact of change in depreciation method                       |                      |                         |   |   |         |   | (9 | )     |   |   |       |     |   |   | (9  | )  
|Impact of net gas imbalance price revaluation                 |                      |                         |   |   |         |   | (4 | )     |   |   |       |     |   |   | (4  | )  
|Impact of Table Rock facility sold in 2003                    |                      |                         |   |   |         |   | (6 | )     |   |   |       |     |   |   | (6  | )  
|Reapplication of SFAS No. 71 in 2003                          |                      |                         |   |   |         |   |   |       |   |   | (15    | )   |   |   | (15 | )  
|Storage facility gas loss in 2004                             |                      |                         |   |   |         |   | (6 | )     |   |   |       |     |   |   | (6  | )  
|Increase in overhead and shared service costs from affiliates |                      |                         |   |   |         |   | (4 | )     |   |   |       |     |   |   | (4  | )  
|Environmental reserve accrual in 2004                         |                      |                         |   |   |         |   | (2 | )     |   |   |       |     |   |   | (2  | )  
|Other items                                                   |                      |                         | (3 | ) |         |   | (7 | )     |   |   | (5     | )   |   |   | (15 | )  
|                                                              |                      |                         |    |   |         |   |    |       |   |   |        |    
|                                                              | Total impact on EBIT |                         | $  | 5 |         |   | $  | (44   | ) |   | $      | (20 | ) |   | $   | (59 | )
|                                                              |                      |                         |    |   |         |   |    |       |   |   |        |    

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Gas Not Used in Operations and Processing Revenues.


Reapplication of SFAS No. 71. Accounting for the Effects of Certain
Types of Regulation,


Expansions.


Recontracting.


Regulatory Matters.






Affiliated Interest Income, Net




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Income Taxes


|                   |  |                   |    |   |      |   |    |  
|------------------ |  | ----------------- | -- | - | ---- | - | -- | -
|                   |  | Year Ended        |   
|                   |  | December 31,      |   
|                   |  |                   |   
|                   |  | 2004              |    |   | 2003 |  
|                   |  |                   |    |   |      |  
|                   |  | (In millions,     |   
|                   |  | except for rates) |   
|Income taxes       |  | $                 | 39 |   |      | $ | 64 |  
|Effective tax rate |  |                   | 35 | % |      |   | 38 | %



Discontinued Operations




Liquidity




Debt




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Capital Expenditures




|                |       |               |    |    |      |   |    |    | 
|--------------- | ----- | ------------- | -- | -- | ---- | - | -- | -- | 
|                |       | 2004          |    |    | 2003 |  
|                |       |               |    |    |      |  
|                |       | (In millions) |   
|Maintenance     |       | $             | 35 |    |      | $ | 30 |   
|Expansion/Other |       |               | 12 |    |      |   | 19 |   
|                |       |               |    |    |      |  
|                | Total |               | $  | 47 |      |   | $  | 49 | 
|                |       |               |    |    |      |  



Commitments and Contingencies




New Accounting Pronouncements Issued But Not Yet Adopted




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RISK FACTORS AND CAUTIONARY STATEMENT FOR PURPOSES OF THE
SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995






Risks Related to Our Business


Our success depends on factors beyond our control.






| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | service area competition;                                                                                                 
|
| |  | expiration and/or turn back of significant contracts;                                                                     
|
| |  | changes in regulation and actions of regulatory bodies;                                                                   
|
| |  | future weather conditions;                                                                                                
|
| |  | price competition;                                                                                                        
|
| |  | drilling activity and supply availability of natural gas;                                                                 
|
| |  | decreased availability of conventional gas supply sources and
    the availability and timing of other gas supply sources;
|
| |  | increased availability or popularity of alternative energy
    sources such as hydroelectric power;                       
|
| |  | increased cost of capital;                                                                                                
|
| |  | opposition to energy infrastructure development, especially in
    environmentally sensitive areas;                       
|
| |  | adverse general economic conditions; and                                                                                  
|
| |  | unfavorable movements in natural gas and liquids prices.                                                                  

10



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The revenues of our pipeline businesses are generated
under contracts that must be renegotiated periodically.








| |   |                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | competition by other pipelines, including the proposed
    construction by other companies of additional pipeline capacity
    in markets served by us;                             
|
| |  | changes in state regulation of local distribution companies,
    which may cause them to negotiate short-term contracts or turn
    back their capacity when their contracts expire;
|
| |  | reduced demand and market conditions in the areas we serve;                                                                                                                         
|
| |  | the availability of alternative energy sources or gas supply
    points; and                                                                                                        
|
| |  | regulatory actions.                                                                                                                                                                 



Fluctuations in energy commodity prices could adversely
affect our business.






| |   |                                                                                       
| | - | --------------------------------------------------------------------------------------
| |  | regional, domestic and international supply and demand;                               
|
| |  | availability and adequacy of transportation facilities;                               
|
| |  | energy legislation;                                                                   
|
| |  | federal and state taxes, if any, on the transportation and
    storage of natural gas;
|
| |  | abundance of supplies of alternative energy sources; and                              
|
| |  | political unrest among oil-producing countries.                                       

The agencies that regulate us and our customers affect our
profitability.




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Costs of environmental liabilities, regulations and
litigation could exceed our estimates.








| |   |                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the uncertainties in estimating clean up costs;                                                                                                              
|
| |  | the discovery of new sites or information;                                                                                                                   
|
| |  | the uncertainty in quantifying our liability under environmental
    laws that impose joint and several liability on all potentially
    responsible parties;
|
| |  | the nature of environmental laws and regulations; and                                                                                                        
|
| |  | potential changes in environmental laws and regulations,
    including changes in the interpretation or enforcement thereof.                                 



Our operations are subject to operational hazards and
uninsured risks.






One customer contracts for a substantial portion of our
firm transportation capacity.




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Risks Related to Our Affiliation with El Paso




Our relationship with El Paso and its financial condition
subjects us to potential risks that are beyond our
control.












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We may be subject to a change of control under certain
circumstances.




A default under El Pasos $3 billion credit
agreement by any party could accelerate our future borrowings,
if any, under the agreement and our long-term debt, which could
adversely affect our liquidity position.






We could be substantively consolidated with El Paso
if El Paso were forced to seek protection from its
creditors in bankruptcy.




We are an indirect subsidiary of El Paso.






| |   |                                                                
| | - | ---------------------------------------------------------------
| |  | our payment of dividends;                                      
|
| |  | decisions on our financings and our capital raising activities;

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| |   |                                                        
| | - | -------------------------------------------------------
| |  | mergers or other business combinations;                
|
| |  | our acquisitions or dispositions of assets; and        
|
| |  | our participation in El Pasos cash management program.






ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK




|             |                                                            |                                 |   |        |                   |   |          |       |     |      |       |     |  |         |   |     |       |  |   |     |  |  |   |     |  | 
|------------ | ---------------------------------------------------------- | ------------------------------- | - | ------ | ----------------- | - | -------- | ----- | --- | ---- | ----- | --- |  | ------- | - | --- | ----- |  | - | --- |  |  | - | --- |  | 
|             |                                                            | December 31, 2004               |   |        | December 31, 2003 |  
|             |                                                            |                                 |   |        |                   |  
|             |                                                            | Expected Fiscal Year            |   |        |                  
|             |                                                            | of Maturity of Carrying Amounts |   |        |                  
|             |                                                            |                                 |   |        |                  
|             |                                                            |                                 |   | Fair   |                   |   | Carrying |       |     | Fair |      
|             |                                                            | 2005                            |   |        | Thereafter        |   |          | Total |     |      | Value |     |  | Amounts |   |     | Value | 
|             |                                                            |                                 |   |        |                   |   |          |       |     |      |       |     |  |         |   |     |       | 
|             |                                                            | (In millions)                   |  
|Liabilities: |                                                            |                                 |   |        |                   |   |          |       |     |      |       |     |  |         |   |     |       |  |   |     |  |  |   |    
|             | Long-term debt, including
    current portion  fixed rate |                                 | $ | 180 (1 | )                 |   | $        | 100   | (2) |      | $     | 280 |  |         | $ | 290 |       |  | $ | 280 |  |  | $ | 294 | 
|             |                                                            | Average interest rate           |   |        | 10.0              | % |          |       | 6.9 | %    |       |     |  |         |   |     |       |  |   |     |  |  |   |     |  | 






|    |                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In March 2005, we issued $200 million of 5.95% senior notes
    due in 2015.                                                                                     
|   
|(2) | Holders of $100 million of our long-term debt, which has a
    stated maturity date of 2037, have the option to redeem these
    securities in 2007 at par value.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA


COLORADO INTERSTATE GAS COMPANY


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


(In millions)


|                                             |                                          |                         |     |     |      |   |     |      |   |   |     |    |  
|-------------------------------------------- | ---------------------------------------- | ----------------------- | --- | --- | ---- | - | --- | ---- | - | - | --- | -- | -
|                                             |                                          | Year Ended December 31, |    
|                                             |                                          |                         |    
|                                             |                                          | 2004                    |     |     | 2003 |   |     | 2002 |  
|                                             |                                          |                         |     |     |      |   |     |      |  
|Operating revenues                           |                                          | $                       | 284 |     |      | $ | 279 |      |   | $ | 256 |   
|                                             |                                          |                         |     |     |      |   |     |      |  
|Operating expenses                           |                                          |                         |     |     |      |   |     |      |   |   |     |   
|                                             | Operation and maintenance                |                         |     | 122 |      |   |     | 94   |   |   |     | 88 |  
|                                             | Depreciation, depletion and amortization |                         |     | 30  |      |   |     | 21   |   |   |     | 21 |  
|                                             | Gain on long-lived assets                |                         |     |    |      |   |     | (6   | ) |   |     | (1 | )
|                                             | Taxes, other than income taxes           |                         |     | 12  |      |   |     | 11   |   |   |     | 7  |  
|                                             |                                          |                         |     |     |      |   |     |      |  
|                                             |                                          |                         | 164 |     |      |   | 120 |      |   |   | 115 |   
|                                             |                                          |                         |     |     |      |   |     |      |  
|Operating income                             |                                          |                         | 120 |     |      |   | 159 |      |   |   | 141 |   
|Other income, net                            |                                          |                         | 2   |     |      |   | 22  |      |   |   |    |   
|Affiliated dividend income                   |                                          |                         |    |     |      |   |    |      |   |   | 14  |   
|Interest and debt expense                    |                                          |                         | (25 | )   |      |   | (24 | )    |   |   | (23 | ) 
|Affiliated interest income, net              |                                          |                         | 15  |     |      |   | 10  |      |   |   | 4   |   
|                                             |                                          |                         |     |     |      |   |     |      |  
|Income before income taxes                   |                                          |                         | 112 |     |      |   | 167 |      |   |   | 136 |   
|Income taxes                                 |                                          |                         | 39  |     |      |   | 64  |      |   |   | 45  |   
|                                             |                                          |                         |     |     |      |   |     |      |  
|Income from continuing operations            |                                          |                         | 73  |     |      |   | 103 |      |   |   | 91  |   
|Discontinued operations, net of income taxes |                                          |                         |    |     |      |   | 8   |      |   |   | 66  |   
|                                             |                                          |                         |     |     |      |   |     |      |  
|Net income                                   |                                          | $                       | 73  |     |      | $ | 111 |      |   | $ | 157 |   
|Other comprehensive loss                     |                                          |                         |    |     |      |   |    |      |   |   | (3  | ) 
|                                             |                                          |                         |     |     |      |   |     |      |  
|Comprehensive income                         |                                          | $                       | 73  |     |      | $ | 111 |      |   | $ | 154 |   
|                                             |                                          |                         |     |     |      |   |     |      |  



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COLORADO INTERSTATE GAS COMPANY




CONSOLIDATED BALANCE SHEETS


(In millions, except share amounts)


|                                       |                                                                              |                                                   |                                            |     |      |       |       |     |    |       | 
|-------------------------------------- | ---------------------------------------------------------------------------- | ------------------------------------------------- | ------------------------------------------ | --- | ---- | ----- | ----- | --- | -- | ----- | 
|                                       |                                                                              | December 31,                                      |                                           
|                                       |                                                                              |                                                   |                                           
|                                       |                                                                              | 2004                                              |                                            |     | 2003 |      
|                                       |                                                                              |                                                   |                                            |     |      |      
|ASSETS                                
|                                      
|Current assets                         |                                                                              |                                                   |                                            |     |      |       |       |    
|                                       | Cash and cash equivalents                                                    |                                                   | $                                          |    |      |       | $     | 4   |   
|                                       | Accounts and notes receivable                                                |                                                   |                                            |     |      |       |       |     |   
|                                       |                                                                              | Customer, net of allowance of $2 in 2004 and 2003 |                                            |     | 32   |       |       |     | 27 |      
|                                       |                                                                              | Affiliates                                        |                                            |     | 7    |       |       |     | 1  |      
|                                       |                                                                              | Other                                             |                                            |     | 1    |       |       |     | 1  |      
|                                       | Materials and supplies                                                       |                                                   |                                            | 3   |      |       |       | 4   |   
|                                       | Deferred income taxes                                                        |                                                   |                                            | 4   |      |       |       | 7   |   
|                                       | Other                                                                        |                                                   |                                            | 5   |      |       |       | 8   |   
|                                       |                                                                              |                                                   |                                            |     |      |      
|                                       |                                                                              |                                                   | Total current assets                       |     |      | 52    |       |     |    | 52    | 
|                                       |                                                                              |                                                   |                                            |     |      |      
|Property, plant and equipment, at cost |                                                                              |                                                   | 1,181                                      |     |      |       | 1,157 |    
|                                       | Less accumulated depreciation, depletion and amortization                    |                                                   |                                            | 374 |      |       |       | 372 |   
|                                       |                                                                              |                                                   |                                            |     |      |      
|                                       |                                                                              |                                                   | Total property, plant and equipment, net   |     |      | 807   |       |     |    | 785   | 
|                                       |                                                                              |                                                   |                                            |     |      |      
|Other assets                           |                                                                              |                                                   |                                            |     |      |       |       |    
|                                       | Notes receivable from affiliates                                             |                                                   |                                            | 602 |      |       |       | 569 |   
|                                       | Other                                                                        |                                                   |                                            | 19  |      |       |       | 18  |   
|                                       |                                                                              |                                                   |                                            |     |      |      
|                                       |                                                                              |                                                   | 621                                        |     |      |       | 587   |    
|                                       |                                                                              |                                                   |                                            |     |      |      
|                                       |                                                                              |                                                   | Total assets                               |     | $    | 1,480 |       |     | $  | 1,424 | 
|                                       |                                                                              |                                                   |                                            |     |      |      
|                                      
|LIABILITIES AND STOCKHOLDERS EQUITY  
|Current liabilities                    |                                                                              |                                                   |                                            |     |      |       |       |    
|                                       | Accounts payable                                                             |                                                   |                                            |     |      |       |       |     |   
|                                       |                                                                              | Trade                                             |                                            | $   | 9    |       |       | $   | 2  |      
|                                       |                                                                              | Affiliates                                        |                                            |     | 9    |       |       |     | 10 |      
|                                       |                                                                              | Other                                             |                                            |     | 8    |       |       |     | 9  |      
|                                       | Current maturities of long-term debt                                         |                                                   |                                            | 180 |      |       |       |    |   
|                                       | Accrued liabilities                                                          |                                                   |                                            | 5   |      |       |       | 14  |   
|                                       | Taxes payable                                                                |                                                   |                                            | 45  |      |       |       | 69  |   
|                                       | Contractual deposits                                                         |                                                   |                                            | 8   |      |       |       | 9   |   
|                                       | Other                                                                        |                                                   |                                            | 1   |      |       |       | 3   |   
|                                       |                                                                              |                                                   |                                            |     |      |      
|                                       |                                                                              |                                                   | Total current liabilities                  |     |      | 265   |       |     |    | 116   | 
|                                       |                                                                              |                                                   |                                            |     |      |      
|Long-term debt                         |                                                                              |                                                   | 100                                        |     |      |       | 280   |    
|                                       |                                                                              |                                                   |                                            |     |      |      
|Other liabilities                      |                                                                              |                                                   |                                            |     |      |       |       |    
|                                       | Deferred income taxes                                                        |                                                   |                                            | 170 |      |       |       | 162 |   
|                                       | Other                                                                        |                                                   |                                            | 13  |      |       |       | 7   |   
|                                       |                                                                              |                                                   |                                            |     |      |      
|                                       |                                                                              |                                                   | 183                                        |     |      |       | 169   |    
|                                       |                                                                              |                                                   |                                            |     |      |      
|Commitments and contingencies          |                                                                              |                                                   |                                            |     |      |       |       |    
|                                      
|Stockholders equity                   |                                                                              |                                                   |                                            |     |      |       |       |    
|                                       | Common stock, par value $1 per share; 1,000 shares
    authorized and issued |                                                   |                                            |    |      |       |       |    |   
|                                       | Additional paid-in capital                                                   |                                                   |                                            | 47  |      |       |       | 47  |   
|                                       | Retained earnings                                                            |                                                   |                                            | 885 |      |       |       | 812 |   
|                                       |                                                                              |                                                   |                                            |     |      |      
|                                       |                                                                              |                                                   | Total stockholders equity                 |     |      | 932   |       |     |    | 859   | 
|                                       |                                                                              |                                                   |                                            |     |      |      
|                                       |                                                                              |                                                   | Total liabilities and stockholders equity |     | $    | 1,480 |       |     | $  | 1,424 | 
|                                       |                                                                              |                                                   |                                            |     |      |      



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COLORADO INTERSTATE GAS COMPANY


CONSOLIDATED STATEMENTS OF CASH FLOWS


(In millions)


|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |      |     |      |      |      |     |      |  
|---------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------- | --------------------------------- | ----------------------------------------- | ---- | --- | --- | ---- | ---- | --- | ---- | ---- | ---- | --- | ---- | -
|                                                                       |                                                                                                          | Year Ended December 31,                                       |                                  
|                                                                       |                                                                                                          |                                                               |                                  
|                                                                       |                                                                                                          | 2004                                                          |                                   |                                           | 2003 |     |     | 2002 |     
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|Cash flows from operating activities                                   |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |      |     |      |     
|                                                                       | Net income                                                                                               |                                                               | $                                 | 73                                        |      |     | $   | 111  |      |     | $    | 157  |     
|                                                                       |                                                                                                          | Less income from discontinued operations, net of income taxes |                                   |                                           |     |     |     |      | 8    |     |      |      | 66   |    
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|                                                                       | Net income from continuing operations                                                                    |                                                               |                                   | 73                                        |      |     |     | 103  |      |     |      | 91   |     
|                                                                       | Adjustments to reconcile net income from continuing operations
    to net cash from operating activities |                                                               |                                   |                                           |      |     |     |      |      |     |      |      |     
|                                                                       |                                                                                                          | Depreciation, depletion and amortization                      |                                   |                                           | 30   |     |     |      | 21   |     |      |      | 21   |    
|                                                                       |                                                                                                          | Deferred income taxes                                         |                                   |                                           | 11   |     |     |      | 33   |     |      |      | 30   |    
|                                                                       |                                                                                                          | Gain on sale of assets                                        |                                   |                                           |     |     |     |      | (6   | )   |      |      | (1   | )  
|                                                                       |                                                                                                          | Re-application of SFAS No. 71                                 |                                   |                                           |     |     |     |      | (15  | )   |      |      |     |    
|                                                                       |                                                                                                          | Other non-cash income items                                   |                                   |                                           | (3   | )   |     |      | (1   | )   |      |      | (3   | )  
|                                                                       |                                                                                                          | Asset and liability changes                                   |                                   |                                           |      |     |     |      |      |     |      |      |      |    
|                                                                       |                                                                                                          |                                                               | Accounts and notes receivable     |                                           |      | (7  | )   |      |      | 63  |      |      |      | (82 | )   
|                                                                       |                                                                                                          |                                                               | Accounts payable                  |                                           |      | 5   |     |      |      | 27  |      |      |      | 66  |     
|                                                                       |                                                                                                          |                                                               | Taxes payable                     |                                           |      | (22 | )   |      |      | (20 | )    |      |      | 40  |     
|                                                                       |                                                                                                          |                                                               | Other asset and liability changes |                                           |      |     |     |      |      |     |      |      |      |     |     
|                                                                       |                                                                                                          |                                                               |                                   | Assets                                    |      |     |    |      |      |     | (5   | )    |      |     | 31   |  
|                                                                       |                                                                                                          |                                                               |                                   | Liabilities                               |      |     | (7  | )    |      |     | (28  | )    |      |     | (3   | )
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|                                                                       |                                                                                                          | Cash provided by continuing operations                        |                                   |                                           | 80   |     |     |      | 172  |     |      |      | 190  |    
|                                                                       |                                                                                                          | Cash provided by (used in) discontinued operations            |                                   |                                           |     |     |     |      | (4   | )   |      |      | 13   |    
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|                                                                       |                                                                                                          |                                                               |                                   | Net cash provided by operating activities |      |     | 80  |      |      |     | 168  |      |      |     | 203  |  
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|Cash flows from investing activities                                   |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |      |     |      |     
|                                                                       | Additions to property, plant and equipment                                                               |                                                               |                                   | (47                                       | )    |     |     | (49  | )    |     |      | (129 | )   
|                                                                       | Additions to investments                                                                                 |                                                               |                                   |                                          |      |     |     |     |      |     |      | (13  | )   
|                                                                       | Proceeds from the sale of assets and investments                                                         |                                                               |                                   | 1                                         |      |     |     | 9    |      |     |      | 51   |     
|                                                                       | Net change in affiliated advances                                                                        |                                                               |                                   | (35                                       | )    |     |     | (167 | )    |     |      | (237 | )   
|                                                                       | Other                                                                                                    |                                                               |                                   | (3                                        | )    |     |     | (1   | )    |     |      |     |     
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|                                                                       |                                                                                                          | Cash used in continuing operations                            |                                   |                                           | (84  | )   |     |      | (208 | )   |      |      | (328 | )  
|                                                                       |                                                                                                          | Cash provided by discontinued operations                      |                                   |                                           |     |     |     |      | 74   |     |      |      | 135  |    
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|                                                                       |                                                                                                          |                                                               |                                   | Net cash used in investing activities     |      |     | (84 | )    |      |     | (134 | )    |      |     | (193 | )
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|Cash flows from financing activities                                   |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |      |     |      |     
|                                                                       | Dividends paid                                                                                           |                                                               |                                   |                                          |      |     |     | (41  | )    |     |      |     |     
|                                                                       | Contributions from discontinued operations                                                               |                                                               |                                   |                                          |      |     |     | 70   |      |     |      | 148  |     
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|                                                                       |                                                                                                          | Cash provided by continuing operations                        |                                   |                                           |     |     |     |      | 29   |     |      |      | 148  |    
|                                                                       |                                                                                                          | Cash used in discontinued operations                          |                                   |                                           |     |     |     |      | (70  | )   |      |      | (148 | )  
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|                                                                       |                                                                                                          |                                                               |                                   | Net cash used in financing activities     |      |     |    |      |      |     | (41  | )    |      |     |     |  
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|Net change in cash and cash equivalents from continuing
    operations |                                                                                                          |                                                               | (4                                | )                                         |      |     | (7  | )    |      |     | 10   |     
|Cash and cash equivalents                                              |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |      |     |      |     
|                                                                       | Beginning of period                                                                                      |                                                               |                                   | 4                                         |      |     |     | 11   |      |     |      | 1    |     
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     
|                                                                       | End of period                                                                                            |                                                               | $                                 |                                          |      |     | $   | 4    |      |     | $    | 11   |     
|                                                                       |                                                                                                          |                                                               |                                   |                                           |      |     |     |      |     



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COLORADO INTERSTATE GAS COMPANY




CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


(In millions, except share amounts)


|                  |                                                |              |       |       |            |   |    |             |   |       |               |    |       |               |     |     |        |   |   |    |   |   |     |     |  
|----------------- | ---------------------------------------------- | ------------ | ----- | ----- | ---------- | - | -- | ----------- | - | ----- | ------------- | -- | ----- | ------------- | --- | --- | ------ | - | - | -- | - | - | --- | --- | -
|                  |                                                |              |       |       |            |   |    | Accumulated |   |       |              
|                  |                                                | Common stock |       |       | Additional |   |    |             |   | other |               |    | Total |              
|                  |                                                |              |       |       | paid-in    |   |    | Retained    |   |       | comprehensive |    |       | stockholders |    
|                  |                                                | Shares       |       |       | Amount     |   |    | capital     |   |       | earnings      |    |       | income        |     |     | equity |  
|                  |                                                |              |       |       |            |   |    |             |   |       |               |    |       |               |     |     |        |  
|January 1, 2002   |                                                |              | 10    |       |            | $ | 28 |             |   | $     | 20            |    |       | $             | 585 |     |        | $ | 3 |    |   | $ | 636 |    
|                  | Net income                                     |              |       |       |            |   |    |             |   |       |               |    |       |               |     | 157 |        |   |   |    |   |   |     | 157 |  
|                  | Other comprehensive loss, net of $1 in taxes   |              |       |       |            |   |    |             |   |       |               |    |       |               |     |     |        |   |   | (3 | ) |   |     | (3  | )
|                  | Change in par value and shares of common stock |              |       | 990   |            |   |    | (28         | ) |       |               | 28 |       |               |     |     |        |   |   |    |   |   |     |    |  
|                  |                                                |              |       |       |            |   |    |             |   |       |               |    |       |               |     |     |        |  
|December 31, 2002 |                                                |              | 1,000 |       |            |   |   |             |   |       | 48            |    |       |               | 742 |     |        |   |  |    |   |   | 790 |    
|                  | Net income                                     |              |       |       |            |   |    |             |   |       |               |    |       |               |     | 111 |        |   |   |    |   |   |     | 111 |  
|                  | Allocated tax expense of El Paso equity plans  |              |       |       |            |   |    |             |   |       |               | (1 | )     |               |     |     |        |   |   |    |   |   |     | (1  | )
|                  | Dividends                                      |              |       |       |            |   |    |             |   |       |               |    |       |               |     | (41 | )      |   |   |    |   |   |     | (41 | )
|                  |                                                |              |       |       |            |   |    |             |   |       |               |    |       |               |     |     |        |  
|December 31, 2003 |                                                |              | 1,000 |       |            |   |   |             |   |       | 47            |    |       |               | 812 |     |        |   |  |    |   |   | 859 |    
|                  | Net income                                     |              |       |       |            |   |    |             |   |       |               |    |       |               |     | 73  |        |   |   |    |   |   |     | 73  |  
|                  |                                                |              |       |       |            |   |    |             |   |       |               |    |       |               |     |     |        |  
|                  | December 31, 2004                              |              |       | 1,000 |            |   | $  |            |   |       | $             | 47 |       |               | $   | 885 |        |   | $ |   |   |   | $   | 932 |  
|                  |                                                |              |       |       |            |   |    |             |   |       |               |    |       |               |     |     |        |  



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COLORADO INTERSTATE GAS COMPANY


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1. Summary of Significant Accounting Policies


Basis of Presentation and Principles of
Consolidation






| |                 
| | ----------------
| | Use of Estimates



Regulated Operations


Accounting for the
Effect of Certain Types of Regulation






| |                          
| | -------------------------
| | Cash and Cash Equivalents



Allowance for Doubtful Accounts




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| |                       
| | ----------------------
| | Materials and Supplies



Natural Gas Imbalances








| |                              
| | -----------------------------
| | Property, Plant and Equipment











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Asset Impairments


Accounting for
the Impairment or Disposal of Long-Lived Assets




| |                                       
| | --------------------------------------
| | Accumulated Other Comprehensive Income





| |                    
| | -------------------
| | Revenue Recognition





| |                                            
| | -------------------------------------------
| | Environmental Costs and Other Contingencies



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| |             
| | ------------
| | Income Taxes





2. Discontinued Operations and Divestitures




| |                        
| | -----------------------
| | Discontinued Operations











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|                   |                        |                                                          |   |     |      |  |   |      |     | 
|------------------ | ---------------------- | -------------------------------------------------------- | - | --- | ---- |  | - | ---- | --- | 
|                   |                        | December 31,                                             |  
|                   |                        |                                                          |  
|                   |                        | 2003                                                     |   |     | 2002 | 
|                   |                        |                                                          |   |     |      | 
|                   |                        | (In millions)                                            |  
|Operating Results: |                        |                                                          |   |     |      |  |   |     
|                   | Revenues               |                                                          | $ | 67  |      |  | $ | 185  |    
|                   | Costs and expenses     |                                                          |   | (67 | )    |  |   | (142 | )  
|                   | Gain on sale of assets |                                                          |   | 12  |      |  |   | 61   |    
|                   |                        |                                                          |   |     |      | 
|                   |                        | Operating income                                         |   |     | 12   |  |   |      | 104 | 
|                   | Income taxes           |                                                          |   | (4  | )    |  |   | (38  | )  
|                   |                        |                                                          |   |     |      | 
|                   |                        | Income from discontinued operations, net of income taxes |   | $   | 8    |  |   | $    | 66  | 
|                   |                        |                                                          |   |     |      | 





| |             
| | ------------
| | Divestitures







3. Income Taxes




|         |         |                                               |    |    |      |  |    |      |    |  |    |    |    | 
|-------- | ------- | --------------------------------------------- | -- | -- | ---- |  | -- | ---- | -- |  | -- | -- | -- | 
|         |         | 2004                                          |    |    | 2003 |  |    | 2002 |   
|         |         |                                               |    |    |      |  |    |      |   
|         |         | (In millions)                                 |   
|Current  |         |                                               |    |    |      |  |    |      |    |  |    |   
|         | Federal |                                               | $  | 30 |      |  | $  | 28   |    |  | $  | 13 |   
|         | State   |                                               |    | (2 | )    |  |    | 3    |    |  |    | 2  |   
|         |         |                                               |    |    |      |  |    |      |   
|         |         |                                               | 28 |    |      |  | 31 |      |    |  | 15 |   
|         |         |                                               |    |    |      |  |    |      |   
|Deferred |         |                                               |    |    |      |  |    |      |    |  |    |   
|         | Federal |                                               |    | 10 |      |  |    | 29   |    |  |    | 27 |   
|         | State   |                                               |    | 1  |      |  |    | 4    |    |  |    | 3  |   
|         |         |                                               |    |    |      |  |    |      |   
|         |         |                                               | 11 |    |      |  | 33 |      |    |  | 30 |   
|         |         |                                               |    |    |      |  |    |      |   
|         |         | Total income taxes from continuing operations |    | $  | 39   |  |    | $    | 64 |  |    | $  | 45 | 
|         |         |                                               |    |    |      |  |    |      |   

24



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|                                                  |                                                                        |               |    |    |      |   |    |      |  |   |    |    |  
|------------------------------------------------- | ---------------------------------------------------------------------- | ------------- | -- | -- | ---- | - | -- | ---- |  | - | -- | -- | -
|                                                  |                                                                        | 2004          |    |    | 2003 |   |    | 2002 | 
|                                                  |                                                                        |               |    |    |      |   |    |      | 
|                                                  |                                                                        | (In millions) |   
|Income taxes at the statutory federal rate of 35% |                                                                        | $             | 39 |    |      | $ | 58 |      |  | $ | 48 |   
|Increase (decrease)                               |                                                                        |               |    |    |      |   |    |      |  |   |    |   
|                                                  | Current year state income taxes, net of federal income tax
    benefit |               |    | 3  |      |   |    | 5    |  |   |    | 3  |  
|                                                  | State income tax adjustment, net of federal income tax benefit         |               |    | (3 | )    |   |    |     |  |   |    |   |  
|                                                  | Affiliated dividend income                                             |               |    |   |      |   |    |     |  |   |    | (5 | )
|                                                  | Other                                                                  |               |    |   |      |   |    | 1    |  |   |    | (1 | )
|                                                  |                                                                        |               |    |    |      |   |    |      | 
|Income taxes from continuing operations           |                                                                        | $             | 39 |    |      | $ | 64 |      |  | $ | 45 |   
|                                                  |                                                                        |               |    |    |      |   |    |      | 
|Effective tax rate                                |                                                                        |               | 35 | %  |      |   | 38 | %    |  |   | 33 | % 
|                                                  |                                                                        |               |    |    |      |   |    |      | 



|                           |                               |                              |     |     |      |   |     |     |     | 
|-------------------------- | ----------------------------- | ---------------------------- | --- | --- | ---- | - | --- | --- | --- | 
|                           |                               | 2004                         |     |     | 2003 |  
|                           |                               |                              |     |     |      |  
|                           |                               | (In millions)                |    
|Deferred tax liabilities   |                               |                              |     |     |      |   |     |    
|                           | Property, plant and equipment |                              | $   | 165 |      |   | $   | 154 |    
|                           | Other                         |                              |     | 14  |      |   |     | 15  |    
|                           |                               |                              |     |     |      |  
|                           |                               | Total deferred tax liability |     |     | 179  |   |     |     | 169 | 
|                           |                               |                              |     |     |      |  
|Deferred tax assets        |                               |                              |     |     |      |   |     |    
|                           | Other                         |                              |     | 13  |      |   |     | 14  |    
|                           |                               |                              |     |     |      |  
|                           |                               | Total deferred tax asset     |     |     | 13   |   |     |     | 14  | 
|                           |                               |                              |     |     |      |  
|Net deferred tax liability |                               | $                            | 166 |     |      | $ | 155 |    
|                           |                               |                              |     |     |      |  



4. Financial Instruments




|                                     |                                                     |               |   |     |            |  |          |        |  |  |            |     |  |  |   |     | 
|------------------------------------ | --------------------------------------------------- | ------------- | - | --- | ---------- |  | -------- | ------ |  |  | ---------- | --- |  |  | - | --- | 
|                                     |                                                     | 2004          |   |     | 2003       | 
|                                     |                                                     |               |   |     |            | 
|                                     |                                                     | Carrying      |   |     |            |  | Carrying |        |  | 
|                                     |                                                     | Amount        |   |     | Fair Value |  |          | Amount |  |  | Fair Value |    
|                                     |                                                     |               |   |     |            |  |          |        |  |  |            |    
|                                     |                                                     | (In millions) |  
|Balance sheet financial instruments: |                                                     |               |   |     |            |  |          |        |  |  |            |     |  |  |   |    
|                                     | Long-term debt, including current
    maturities(1) |               | $ | 280 |            |  | $        | 290    |  |  | $          | 280 |  |  | $ | 294 | 




|    |                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------
|(1) | We estimated the fair value of debt with fixed interest rates
    based on quoted market prices for the same or similar issues.



25



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5. Regulatory Assets and Liabilities




|                                   |                                                                                |                                            |   |   |      |  |   |   |    | 
|---------------------------------- | ------------------------------------------------------------------------------ | ------------------------------------------ | - | - | ---- |  | - | - | -- | 
|Description                        |                                                                                | 2004                                       |   |   | 2003 | 
|                                   |                                                                                |                                            |   |   |      | 
|                                   |                                                                                | (In millions)                              |  
|Non-current regulatory assets      |                                                                                |                                            |   |   |      |  |   |  
|                                   | Grossed-up deferred taxes on capitalized funds used during
    construction(1) |                                            | $ | 9 |      |  | $ | 9 |   
|                                   | Postretirement benefit                                                         |                                            |   | 5 |      |  |   | 6 |   
|                                   | Under-collected deferred income taxes                                          |                                            |   | 1 |      |  |   | 1 |   
|                                   |                                                                                |                                            |   |   |      | 
|                                   |                                                                                | Total non-current regulatory
    assets(2) |   | $ | 15   |  |   | $ | 16 | 
|                                   |                                                                                |                                            |   |   |      | 
|Current regulatory liabilities     |                                                                                |                                            |   |   |      |  |   |  
|                                   | Postemployment benefit                                                         |                                            | $ |  |      |  | $ | 1 |   
|                                   |                                                                                |                                            |   |   |      | 
|Non-current regulatory liabilities |                                                                                |                                            |   |   |      |  |   |  
|                                   | Excess deferred income taxes                                                   |                                            | $ | 1 |      |  | $ | 1 |   
|                                   |                                                                                |                                            |   |   |      | 
|                                   |                                                                                | Total regulatory
    liabilities(2)        |   | $ | 1    |  |   | $ | 2  | 
|                                   |                                                                                |                                            |   |   |      | 




|    |                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------
|(1) | This amount is not included in our rate base on which we earn a
    current return.                                     
|(2) | Amounts are included as other non-current assets and other
    current and non-current liabilities in our balance sheet.

6. Debt and Other Credit Facilities






Credit Facilities








26



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7. Commitments and Contingencies


Legal Proceedings


Grynberg. Qui Tam


Will Price (formerly Quinque). Will Price,
et al. v. Gas Pipelines and Their Predecessors,
et al.,








| |                      
| | ---------------------
| | Environmental Matters



|                                                 |  |   |    |  
|------------------------------------------------ |  | - | -- | -
|Balance at January 1, 2004                       |  | $ | 14 |  
|Additions/adjustments for remediation activities |  |   | 3  |  
|Payments for remediation activities              |  |   | (3 | )
|                                                 |  |   |   
|Balance at December 31, 2004                     |  | $ | 14 |  
|                                                 |  |   |   

27



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Rates and Regulatory Matters


Accounting for Pipeline Integrity Costs.


Selective Discounting Notice of Inquiry.




Capital and Other Commitments






Operating Leases




28



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8. Retirement Benefits


Pension and Retirement Benefits








| |                              
| | -----------------------------
| | Other Postretirement Benefits



Accounting and Disclosure Requirements Related to the
Medicare Prescription Drug, Improvement and Modernization Act of
2003


29



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|                                 |                                                      |               |   |    |      |  |   |    |  
|-------------------------------- | ---------------------------------------------------- | ------------- | - | -- | ---- |  | - | -- | -
|                                 |                                                      | 2004          |   |    | 2003 | 
|                                 |                                                      |               |   |    |      | 
|                                 |                                                      | (In millions) |  
|Change in benefit obligation:    |                                                      |               |   |    |      |  |   |   
|                                 | Projected benefit obligation at beginning of period: |               | $ | 12 |      |  | $ | 13 |  
|                                 | Interest cost                                        |               |   | 1  |      |  |   | 1  |  
|                                 | Participant contributions                            |               |   | 1  |      |  |   | 1  |  
|                                 | Actuarial gain                                       |               |   |   |      |  |   | (1 | )
|                                 | Benefits paid                                        |               |   | (2 | )    |  |   | (2 | )
|                                 |                                                      |               |   |    |      | 
|                                 | Projected benefit obligation at end of period        |               | $ | 12 |      |  | $ | 12 |  
|                                 |                                                      |               |   |    |      | 
|Change in plan assets:           |                                                      |               |   |    |      |  |   |   
|                                 | Fair value of plan assets at beginning of period     |               | $ | 13 |      |  | $ | 10 |  
|                                 | Actual return on plan assets                         |               |   | 1  |      |  |   | 2  |  
|                                 | Employer contributions                               |               |   | 1  |      |  |   | 2  |  
|                                 | Participant contributions                            |               |   | 1  |      |  |   | 1  |  
|                                 | Benefits paid                                        |               |   | (2 | )    |  |   | (2 | )
|                                 |                                                      |               |   |    |      | 
|                                 | Fair value of plan assets at end of period           |               | $ | 14 |      |  | $ | 13 |  
|                                 |                                                      |               |   |    |      | 
|Reconciliation of funded status: |                                                      |               |   |    |      |  |   |   
|                                 | Funded status at September 30                        |               | $ | 2  |      |  | $ | 1  |  
|                                 | Unrecognized actuarial gain                          |               |   | (5 | )    |  |   | (6 | )
|                                 |                                                      |               |   |    |      | 
|                                 | Net accrued benefit cost at December 31              |               | $ | (3 | )    |  | $ | (5 | )
|                                 |                                                      |               |   |    |      | 



|             |       |   |   |    | 
|------------ | ----- | - | - | -- | 
|Year Ending  |       |  
|December 31, |       |  
|             |       |  
|2005         |       | $ | 1 |   
|2006         |       |   | 1 |   
|2007         |       |   | 1 |   
|2008         |       |   | 1 |   
|2009         |       |   | 1 |   
|2010 - 2014  |       |   | 5 |   
|             |       |   |  
|             | Total |   | $ | 10 | 
|             |       |   |  



|                                |  |               |    |   |      |   |    |      |  |   |   | 
|------------------------------- |  | ------------- | -- | - | ---- | - | -- | ---- |  | - | - | 
|                                |  | 2004          |    |   | 2003 |   |    | 2002 | 
|                                |  |               |    |   |      |   |    |      | 
|                                |  | (In millions) |   
|Interest cost                   |  | $             | 1  |   |      | $ | 1  |      |  | $ | 1 | 
|Expected return on plan assets  |  |               | (1 | ) |      |   | (1 | )    |  |   |  | 
|                                |  |               |    |   |      |   |    |      | 
|Net postretirement benefit cost |  | $             |   |   |      | $ |   |      |  | $ | 1 | 
|                                |  |               |    |   |      |   |    |      | 

30



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|                                                            |                                       |           |  |      |      |  |  |      |  |  |  |      | 
|----------------------------------------------------------- | ------------------------------------- | --------- |  | ---- | ---- |  |  | ---- |  |  |  | ---- | 
|                                                            |                                       | 2004      |  |      | 2003 |  |  | 2002 | 
|                                                            |                                       |           |  |      |      |  |  |      | 
|                                                            |                                       | (Percent) | 
|Assumptions related to benefit obligations at September 30: |                                       |           |  |      |      |  |  |      |  |  |  |     
|                                                            | Discount rate                         |           |  | 5.75 |      |  |  | 6.00 |  |  |  |      | 
|Assumptions related to benefit costs at December 31:        |                                       |           |  |      |      |  |  |      |  |  |  |     
|                                                            | Discount rate                         |           |  | 6.00 |      |  |  | 6.75 |  |  |  | 7.25 | 
|                                                            | Expected return on plan
    assets(1) |           |  | 7.50 |      |  |  | 7.50 |  |  |  | 7.50 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The expected return on plan assets is a pre-tax rate (before a
    tax rate ranging from 35 percent to 38 percent on
    postretirement benefits) that is primarily based on an expected
    risk-free investment return, adjusted for historical risk
    premiums and specific risk adjustments associated with our debt
    and equity securities. These expected returns were then weighted
    based on the target asset allocations of our investment
    portfolio.





| |                                 
| | --------------------------------
| | Other Postretirement Plan Assets



|                  |       |           |    |     |        |  |    |     | 
|----------------- | ----- | --------- | -- | --- | ------ |  | -- | --- | 
|                  |       | Actual    |    |     | Actual | 
|Asset Category    |       | 2004      |    |     | 2003   | 
|                  |       |           |    |     |        | 
|                  |       | (Percent) |   
|Equity securities |       |           | 56 |     |        |  | 28 |    
|Debt securities   |       |           | 30 |     |        |  | 58 |    
|Other             |       |           | 14 |     |        |  | 14 |    
|                  |       |           |    |     |        | 
|                  | Total |           |    | 100 |        |  |    | 100 | 
|                  |       |           |    |     |        | 





9. Transactions with Major Customer




|                                          |  |               |    |  |      |   |    |      |  |   |    | 
|----------------------------------------- |  | ------------- | -- |  | ---- | - | -- | ---- |  | - | -- | 
|                                          |  | 2004          |    |  | 2003 |   |    | 2002 | 
|                                          |  |               |    |  |      |   |    |      | 
|                                          |  | (In millions) |   
|Public Service Company of
    Colorado(1) |  | $             | 96 |  |      | $ | 95 |      |  | $ | 88 | 






|    |                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Our contracts with PSCO include 1,418 BBtu/d that expire between
    2006 and 2014. Of this amount, 187 BBtu/d expires in 2006 and
    970 BBtu/d expires in 2007.

31



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10. Supplemental Cash Flow Information




|                                           |  |               |    |  |      |   |    |      |  |   |    | 
|------------------------------------------ |  | ------------- | -- |  | ---- | - | -- | ---- |  | - | -- | 
|                                           |  | 2004          |    |  | 2003 |   |    | 2002 | 
|                                           |  |               |    |  |      |   |    |      | 
|                                           |  | (In millions) |   
|Interest paid, net of capitalized interest |  | $             | 25 |  |      | $ | 23 |      |  | $ | 22 | 
|Income tax payments                        |  |               | 51 |  |      |   | 63 |      |  |   | 27 | 

11. Transactions with Affiliates


Cash Management Program.


Affiliate Receivables and Payables.






Other.


Affiliate Revenues and Expenses.




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|                                                          |  |               |    |  |      |   |    |      |  |   |    | 
|--------------------------------------------------------- |  | ------------- | -- |  | ---- | - | -- | ---- |  | - | -- | 
|                                                          |  | 2004          |    |  | 2003 |   |    | 2002 | 
|                                                          |  |               |    |  |      |   |    |      | 
|                                                          |  | (In millions) |   
|Revenues                                                  |  | $             | 36 |  |      | $ | 33 |      |  | $ | 48 | 
|Operation and maintenance expenses from affiliates        |  |               | 53 |  |      |   | 63 |      |  |   | 61 | 
|Reimbursement of operating expenses charged to affiliates |  |               | 10 |  |      |   | 9  |      |  |   | 10 | 



|    |                                                                      
|--- | ---------------------------------------------------------------------
|12. | Supplemental Selected Quarterly Financial Information
    (Unaudited)



|     |                                              |                |   |    |         |  |   |              |  |  |             |    |  |       |   |    |  |  |   |     | 
|---- | -------------------------------------------- | -------------- | - | -- | ------- |  | - | ------------ |  |  | ----------- | -- |  | ----- | - | -- |  |  | - | --- | 
|     |                                              | Quarters Ended |   |    |        
|     |                                              |                |   |    |        
|     |                                              | March 31       |   |    | June 30 |  |   | September 30 |  |  | December 31 |    |  | Total |  
|     |                                              |                |   |    |         |  |   |              |  |  |             |    |  |       |  
|     |                                              | (In millions)  |  
|2004 |                                              |                |   |    |         |  |   |              |  |  |             |    |  |       |   |    |  |  |   |    
|     | Operating revenues                           |                | $ | 75 |         |  | $ | 65           |  |  | $           | 64 |  |       | $ | 80 |  |  | $ | 284 | 
|     | Operating income                             |                |   | 39 |         |  |   | 25           |  |  |             | 17 |  |       |   | 39 |  |  |   | 120 | 
|     | Net income                                   |                |   | 23 |         |  |   | 14           |  |  |             | 10 |  |       |   | 26 |  |  |   | 73  | 
|2003 |                                              |                |   |    |         |  |   |              |  |  |             |    |  |       |   |    |  |  |   |    
|     | Operating revenues                           |                | $ | 82 |         |  | $ | 68           |  |  | $           | 54 |  |       | $ | 75 |  |  | $ | 279 | 
|     | Operating income                             |                |   | 54 |         |  |   | 41           |  |  |             | 27 |  |       |   | 37 |  |  |   | 159 | 
|     | Income from continuing operations            |                |   | 31 |         |  |   | 22           |  |  |             | 15 |  |       |   | 35 |  |  |   | 103 | 
|     | Discontinued operations, net of income taxes |                |   | 1  |         |  |   | 7            |  |  |             |   |  |       |   |   |  |  |   | 8   | 
|     | Net income                                   |                |   | 32 |         |  |   | 29           |  |  |             | 15 |  |       |   | 35 |  |  |   | 111 | 

33



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Accounting for the Effects of Certain Types of
Regulation,








34



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SCHEDULE II


COLORADO INTERSTATE GAS COMPANY


VALUATION AND QUALIFYING ACCOUNTS


Years Ended December 31, 2004, 2003 and 2002


(In millions)


|            |                                 |            |   |    |            |  |   |               |   |            |          |     |         |           |   |   |  |  |   |    | 
|----------- | ------------------------------- | ---------- | - | -- | ---------- |  | - | ------------- | - | ---------- | -------- | --- | ------- | --------- | - | - |  |  | - | -- | 
|            |                                 | Balance at |   |    | Charged to |  |   |               |   | Charged to |          |     | Balance |          
|            |                                 | Beginning  |   |    | Costs and  |  |   |               |   | Other      |          |     | at End  |          
|Description |                                 | of Period  |   |    | Expenses   |  |   | Deductions(1) |   |            | Accounts |     |         | of Period |  
|            |                                 |            |   |    |            |  |   |               |   |            |          |     |         |           |  
|2004        |                                 |            |   |    |            |  |   |               |   |            |          |     |         |           |   |   |  |  |   |   
|            | Environmental Reserves          |            | $ | 14 |            |  | $ | 3             |   |            | $        | (3  | )       |           | $ |  |  |  | $ | 14 | 
|            | Allowance for Doubtful Accounts |            |   | 2  |            |  |   |              |   |            |          |    |         |           |   |  |  |  |   | 2  | 
|2003        |                                 |            |   |    |            |  |   |               |   |            |          |     |         |           |   |   |  |  |   |   
|            | Legal Reserves                  |            | $ | 2  |            |  | $ | (2            | ) |            | $        |    |         |           | $ |  |  |  | $ |   | 
|            | Environmental Reserves          |            |   | 13 |            |  |   | 3             |   |            |          | (2  | )       |           |   |  |  |  |   | 14 | 
|            | Regulatory Reserves             |            |   | 4  |            |  |   | (4            | ) |            |          |    |         |           |   |  |  |  |   |   | 
|            | Allowance for Doubtful Accounts |            |   | 1  |            |  |   | (1            | ) |            |          |    |         |           |   | 2 |  |  |   | 2  | 
|2002        |                                 |            |   |    |            |  |   |               |   |            |          |     |         |           |   |   |  |  |   |   
|            | Legal Reserves                  |            | $ | 19 |            |  | $ | (7            | ) |            | $        | (10 | )       |           | $ |  |  |  | $ | 2  | 
|            | Environmental Reserves          |            |   | 7  |            |  |   | 8             |   |            |          | (2  | )       |           |   |  |  |  |   | 13 | 
|            | Regulatory Reserves             |            |   | 5  |            |  |   | 7             |   |            |          | (8  | )       |           |   |  |  |  |   | 4  | 
|            | Allowance for Doubtful Accounts |            |   |   |            |  |   | 1             |   |            |          |    |         |           |   |  |  |  |   | 1  | 






|    |                                       
|--- | --------------------------------------
|(1) | These amounts represent cash payments.

35



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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
    AND FINANCIAL DISCLOSURE








|         |                        
|-------- | -----------------------
|ITEM 9A. | CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures






Internal Control Over Financial Reporting




Access to Financial Application Programs and Data.


Changes in Internal Control over Financial Reporting


Changes in the Fourth Quarter 2004.


Changes in 2005.


36



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##### Table of Contents






ITEM 9B. OTHER INFORMATION







PART III









|         |                                       
|-------- | --------------------------------------
|ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees




All Other Fees




Policy for Approval of Audit and Non-Audit Fees




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##### Table of Contents






PART IV





ITEM 15. EXHIBITS AND FINANCIAL STATEMENT
SCHEDULES


(a) The following documents are filed as part of this
report:






|                                                           |  |      |    | 
|---------------------------------------------------------- |  | ---- | -- | 
|                                                           |  | Page |   
|                                                           |  |      |   
|Consolidated Statements of Income and Comprehensive Income |  |      | 16 | 
|Consolidated Balance Sheets                                |  |      | 17 | 
|Consolidated Statements of Cash Flows                      |  |      | 18 | 
|Consolidated Statements of Stockholders Equity            |  |      | 19 | 
|Notes to Consolidated Financial Statements                 |  |      | 20 | 
|Report of Independent Registered Public Accounting Firm    |  |      | 34 | 



| |  |                                                                                                                                                                      |  |  |    | 
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | -- | 
| |  | Schedule II  Valuation and Qualifying
    Accounts                                                                                                                  |  |  | 35 | 
| |  | All other schedules are omitted because they are not applicable,
    or the required information is disclosed in the financial
    statements or accompanying notes. |  |  |    | 



|                 |   
|---------------- | --
|3.  Exhibit list | 39

38



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COLORADO INTERSTATE GAS COMPANY


EXHIBIT LIST


December 31, 2004




|        |      |    |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------- | ---- | -- | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |      |    |            
|Number  |      |    | Description
|        |      |    |            
|        | 3.A  |    |             | Amended and Restated Certificate of Incorporation dated as of
    March 7, 2002 (Exhibit 3.A to our 2001 Form 10-K).                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 3.B  |    |             | By-laws dated June 24, 2002. (Exhibit 3.B to our 2002 Form
    10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | *4.A |    |             | Indenture dated as of June 27, 1997, between Colorado
    Interstate Gas Company and The Bank of New York Trust Company,
    N.A. (successor to Harris Trust and Savings Bank), as Trustee.                                                                                                                                                                                                                                                                                                                                    
|        | *4.A | .1 |             | First Supplemental Indenture dated as of June 27, 1997,
    between Colorado Interstate Gas Company and The Bank of New York
    Trust Company, N.A. (successor to Harris Trust and Savings
    Bank), as Trustee.                                                                                                                                                                                                                                                                                                             
|        | 4.A  | .2 |             | Second Supplemental Indenture dated as of March 9, 2005
    between Colorado Interstate Gas Company and The Bank of New York
    Trust Company, N.A., as Trustee (Exhibit 4.A to our
    Form 8-K filed March 14, 2005).                                                                                                                                                                                                                                                                                                       
|        | 10.A |    |             | Amended and Restated Credit Agreement dated as of
    November 23, 2004, among El Paso Corporation, ANR
    Pipeline Company, Colorado Interstate Gas Company, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, the several
    banks and other financial institutions from time to time parties
    thereto and JPMorgan Chase Bank, N.A., as administrative agent
    and as collateral agent (Exhibit 10.A to our Form 8-K
    filed November 29, 2004).                                                    
|        | 10.B |    |             | Amended and Restated Security Agreement dated as of
    November 23, 2004, among El Paso Corporation, ANR
    Pipeline Company, Colorado Interstate Gas Company, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, the
    Subsidiary Grantors and certain other credit parties thereto and
    JPMorgan Chase Bank, N.A., not in its individual capacity, but
    solely as collateral agent for the Secured Parties and as the
    depository bank (Exhibit 10.B to our Form 8-K filed
    November 29, 2004).

39



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|        |       |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | ----- |  | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |  |            
|Number  |       |  | Description
|        |       |  |            
|        | 10.C  |  |             | $3,000,000,000 Revolving Credit Agreement dated as of
    April 16, 2003 among El Paso Corporation, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company and ANR
    Pipeline Company, as Borrowers, the Lenders Party thereto, and
    JPMorgan Chase Bank, as Administrative Agent, ABN Amro Bank N.V.
    and Citicorp North America, Inc., as Co-Document Agents, Bank of
    America, N.A. and Credit Suisse First Boston, as Co-Syndication
    Agents, J.P. Morgan Securities Inc. and Citigroup Global
    Markets Inc., as Joint Bookrunners and Co-Lead Arrangers.
    (Exhibit 99.1 to El Paso Corporations
    Form 8-K filed April 18, 2003); First Amendment to the
    $3,000,000,000 Revolving Credit Agreement and Waiver dated as of
    March 15, 2004 among El Paso Corporation, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, ANR
    Pipeline Company and Colorado Interstate Gas Company, as
    Borrowers, the Lenders party thereto and JPMorgan Chase Bank, as
    Administrative Agent, ABN AMRO Bank N.V. and Citicorp North
    America, Inc., as Co-Documentation Agents, Bank of America, N.A.
    and Credit Suisse First Boston, as Co-Syndication Agents
    (Exhibit 10.A.1 to our 2003 First Quarter Form 10-Q);
    Second Waiver to the $3,000,000,000 Revolving Credit Agreement
    dated as of June 15, 2004 among El Paso Corporation,
    El Paso Natural Gas Company, Tennessee Gas Pipeline
    Company, ANR Pipeline Company and Colorado Interstate Gas
    Company, as Borrowers, the Lenders party thereto and JPMorgan
    Chase Bank, as Administrative Agent, ABN AMRO Bank N.V. and
    Citicorp North America, Inc., as Co-Documentation Agents, Bank
    of America, N.A. and Credit Suisse First Boston, as
    Co-Syndication Agents (Exhibit 10.A.2 to our 2003 Second
    Quarter Form 10-Q);Second Amendment to the $3,000,000,000
    Revolving Credit Agreement and Third Waiver dated as of
    August 6, 2004 among El Paso Corporation, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, ANR
    Pipeline Company and Colorado Interstate Gas Company, as
    Borrowers, the Lenders party thereto and JPMorgan Chase Bank, as
    Administrative Agent, ABN AMRO Bank N.V. and Citicorp North
    America, Inc., as Co-Documentation Agents, Bank of America, N.A.
    and Credit Suisse First Boston, as Co-Syndication Agents.
    (Exhibit 99.B to our Form 8-K filed August 10,
    2004); Pipeline Company Borrower Joinder Agreement dated as of
    December 23, 2003 (Exhibit 10.E to our 2003
    Form 10-K); CIG Joinder Agreement dated as of
    December 23, 2003 (Exhibit 10.F to our 2003 Form 10-K).
|        | 10.D  |  |             | Security and Intercreditor Agreement dated as of April 16,
    2003 among El Paso Corporation, the persons referred to
    therein as Pipeline Company Borrowers, the persons referred to
    therein as Grantors, each of the Representative Agents, JPMorgan
    Chase Bank, as Credit Agreement Administrative Agent and
    JPMorgan Chase Bank, as Collateral Agent, Intercreditor Agent,
    and Depository Bank. (Exhibit 99.3 to El Paso
    Corporations Form 8-K filed April 18, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10.E  |  |             | Registration Rights Agreement dated as of March 9, 2005
    between Colorado Interstate Gas Company and Citigroup Global
    Markets Inc., Credit Suisse First Boston LLC, BNP Paribas
    Securities Corp., Fortis Securities LLC, Greenwich Capital
    Markets, Inc. and Scotia Capital (USA) Inc. (Exhibit 10.A
    to our Form 8-K filed March 14, 2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 21    |  |             | Omitted pursuant to the reduced disclosure format permitted by
    General Instruction I to Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | *31.A |  |             | Certification of Chief Executive Officer pursuant to sec. 302 of
    the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | *31.B |  |             | Certification of Chief Financial Officer pursuant to sec. 302 of
    the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | *32.A |  |             | Certification of Chief Executive Officer pursuant to
    18 U.S.C. sec. 1350 as adopted pursuant to
    sec. 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | *32.B |  |             | Certification of Chief Financial Officer pursuant to
    18 U.S.C. sec. 1350 as adopted pursuant to
    sec. 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

40



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##### Table of Contents



Undertaking




41



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##### Table of Contents






SIGNATURES






| |                                
| | -------------------------------
| | COLORADO INTERSTATE GAS COMPANY



| |    |                           
| | -- | --------------------------
| | By | /s/ JOHN W. SOMERHALDER II

| |                       
| | ----------------------
| |                       
| | John W. Somerhalder II
| | Chairman of the Board 



|                                                       |  |                                                                                                                         |  |                |  | 
|------------------------------------------------------ |  | ----------------------------------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                                              |  | Title                                                                                                                   |  | Date          
|                                                       |  |                                                                                                                         |  |               
|/s/ JOHN W. SOMERHALDER II(John
    W. Somerhalder II) |  | Chairman of the Board and Director (Principal Executive Officer)                                                        |  | March 29, 2005
|                                                      
|/s/ JAMES J. CLEARY(James
    J. Cleary)               |  | President and Director                                                                                                  |  | March 29, 2005
|                                                      
|/s/ GREG G. GRUBER(Greg
    G. Gruber)                 |  | Senior Vice President, Chief Financial Officer, Treasurer and
    Director (Principal Financial and Accounting Officer) |  | March 29, 2005

42



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##### Table of Contents



COLORADO INTERSTATE GAS COMPANY


EXHIBIT INDEX


December 31, 2004




|        |      |    |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------- | ---- | -- | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |      |    |            
|Number  |      |    | Description
|        |      |    |            
|        | 3.A  |    |             | Amended and Restated Certificate of Incorporation dated as of
    March 7, 2002 (Exhibit 3.A to our 2001 Form 10-K).                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 3.B  |    |             | By-laws dated June 24, 2002. (Exhibit 3.B to our 2002 Form
    10-K)                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | *4.A |    |             | Indenture dated as of June 27, 1997, between Colorado
    Interstate Gas Company and The Bank of New York Trust Company,
    N.A. (successor to Harris Trust and Savings Bank), as Trustee.                                                                                                                                                                                                                                                                                                                                    
|        | *4.A | .1 |             | First Supplemental Indenture dated as of June 27, 1997,
    between Colorado Interstate Gas Company and The Bank of New York
    Trust Company, N.A. (successor to Harris Trust and Savings
    Bank), as Trustee.                                                                                                                                                                                                                                                                                                             
|        | 4.A  | .2 |             | Second Supplemental Indenture dated as of March 9, 2005
    between Colorado Interstate Gas Company and The Bank of New York
    Trust Company, N.A., as Trustee (Exhibit 4.A to our
    Form 8-K filed March 14, 2005).                                                                                                                                                                                                                                                                                                       
|        | 10.A |    |             | Amended and Restated Credit Agreement dated as of
    November 23, 2004, among El Paso Corporation, ANR
    Pipeline Company, Colorado Interstate Gas Company, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, the several
    banks and other financial institutions from time to time parties
    thereto and JPMorgan Chase Bank, N.A., as administrative agent
    and as collateral agent (Exhibit 10.A to our Form 8-K
    filed November 29, 2004).                                                    
|        | 10.B |    |             | Amended and Restated Security Agreement dated as of
    November 23, 2004, among El Paso Corporation, ANR
    Pipeline Company, Colorado Interstate Gas Company, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, the
    Subsidiary Grantors and certain other credit parties thereto and
    JPMorgan Chase Bank, N.A., not in its individual capacity, but
    solely as collateral agent for the Secured Parties and as the
    depository bank (Exhibit 10.B to our Form 8-K filed
    November 29, 2004).



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##### Table of Contents



|        |       |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | ----- |  | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |  |            
|Number  |       |  | Description
|        |       |  |            
|        | 10.C  |  |             | $3,000,000,000 Revolving Credit Agreement dated as of
    April 16, 2003 among El Paso Corporation, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company and ANR
    Pipeline Company, as Borrowers, the Lenders Party thereto, and
    JPMorgan Chase Bank, as Administrative Agent, ABN Amro Bank N.V.
    and Citicorp North America, Inc., as Co-Document Agents, Bank of
    America, N.A. and Credit Suisse First Boston, as Co-Syndication
    Agents, J.P. Morgan Securities Inc. and Citigroup Global
    Markets Inc., as Joint Bookrunners and Co-Lead Arrangers.
    (Exhibit 99.1 to El Paso Corporations
    Form 8-K filed April 18, 2003); First Amendment to the
    $3,000,000,000 Revolving Credit Agreement and Waiver dated as of
    March 15, 2004 among El Paso Corporation, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, ANR
    Pipeline Company and Colorado Interstate Gas Company, as
    Borrowers, the Lenders party thereto and JPMorgan Chase Bank, as
    Administrative Agent, ABN AMRO Bank N.V. and Citicorp North
    America, Inc., as Co-Documentation Agents, Bank of America, N.A.
    and Credit Suisse First Boston, as Co-Syndication Agents
    (Exhibit 10.A.1 to our 2003 First Quarter Form 10-Q);
    Second Waiver to the $3,000,000,000 Revolving Credit Agreement
    dated as of June 15, 2004 among El Paso Corporation,
    El Paso Natural Gas Company, Tennessee Gas Pipeline
    Company, ANR Pipeline Company and Colorado Interstate Gas
    Company, as Borrowers, the Lenders party thereto and JPMorgan
    Chase Bank, as Administrative Agent, ABN AMRO Bank N.V. and
    Citicorp North America, Inc., as Co-Documentation Agents, Bank
    of America, N.A. and Credit Suisse First Boston, as
    Co-Syndication Agents (Exhibit 10.A.2 to our 2003 Second
    Quarter Form 10-Q);Second Amendment to the $3,000,000,000
    Revolving Credit Agreement and Third Waiver dated as of
    August 6, 2004 among El Paso Corporation, El Paso
    Natural Gas Company, Tennessee Gas Pipeline Company, ANR
    Pipeline Company and Colorado Interstate Gas Company, as
    Borrowers, the Lenders party thereto and JPMorgan Chase Bank, as
    Administrative Agent, ABN AMRO Bank N.V. and Citicorp North
    America, Inc., as Co-Documentation Agents, Bank of America, N.A.
    and Credit Suisse First Boston, as Co-Syndication Agents.
    (Exhibit 99.B to our Form 8-K filed August 10,
    2004); Pipeline Company Borrower Joinder Agreement dated as of
    December 23, 2003 (Exhibit 10.E to our 2003
    Form 10-K); CIG Joinder Agreement dated as of
    December 23, 2003 (Exhibit 10.F to our 2003 Form 10-K).
|        | 10.D  |  |             | Security and Intercreditor Agreement dated as of April 16,
    2003 among El Paso Corporation, the persons referred to
    therein as Pipeline Company Borrowers, the persons referred to
    therein as Grantors, each of the Representative Agents, JPMorgan
    Chase Bank, as Credit Agreement Administrative Agent and
    JPMorgan Chase Bank, as Collateral Agent, Intercreditor Agent,
    and Depository Bank. (Exhibit 99.3 to El Paso
    Corporations Form 8-K filed April 18, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10.E  |  |             | Registration Rights Agreement dated as of March 9, 2005
    between Colorado Interstate Gas Company and Citigroup Global
    Markets Inc., Credit Suisse First Boston LLC, BNP Paribas
    Securities Corp., Fortis Securities LLC, Greenwich Capital
    Markets, Inc. and Scotia Capital (USA) Inc. (Exhibit 10.A to our
    Form 8-K filed March 14, 2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 21    |  |             | Omitted pursuant to the reduced disclosure format permitted by
    General Instruction I to Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | *31.A |  |             | Certification of Chief Executive Officer pursuant to sec. 302 of
    the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | *31.B |  |             | Certification of Chief Financial Officer pursuant to sec. 302 of
    the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | *32.A |  |             | Certification of Chief Executive Officer pursuant to
    18 U.S.C. sec. 1350 as adopted pursuant to
    sec. 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | *32.B |  |             | Certification of Chief Financial Officer pursuant to
    18 U.S.C. sec. 1350 as adopted pursuant to
    sec. 906 of the Sarbanes-Oxley Act of 2002.