Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

Effective Date: 05/01/2010, Docket: RP10-514-000, Status: Effective

Original Sheet No. 214A Original Sheet No. 214A

GENERAL TERMS AND CONDITIONS

6. RIGHT OF FIRST REFUSAL AT EXPIRATION OR RENEGOTIATION OF AGREEMENTS

(cont'd)

6.2 Procedure

Southern Star will post the availability of capacity under an

expiring or terminating service agreement on its electronic

bulletin board together with all applicable terms (including

quantity and maximum rate) six months prior to the expiration or

termination of any such service agreement, however, if the

termination notice period under a service agreement is less than

six months, Southern Star shall post the availability of such

capacity after either party provides the other with a notice of

termination. Such posting shall state the bid closing date and

will remain on the bulletin board for at least one month. Bids

for such capacity may be for less than the total amount of the

capacity available.

The best bid shall be that bid which Southern Star determines,

after consideration of the elements of the bid, including but not

limited to, term, quantity, and rate(s), provides the greatest

economic value, after discounting for net present value. Southern

Star will evaluate the net present value of any bid using a

discount rate equal to the interest rate applicable to pipeline

refunds pursuant to Section 154.501 of the Commission's

regulations or successor regulation. A bid to pay the maximum

rate for a given term will be deemed superior to a bid to pay a

specified dollar rate, which is equal to the currently effective

maximum rate, for the same term, if other elements of the bids are

the same. In the event of a tie, the best bid first received by

Southern Star will be the best bid.