Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 10/01/2007, Docket: RP07-657-000, Status: Effective

Third Revised Sheet No. 144A Third Revised Sheet No. 144A : Effective

Superseding: Second Revised Sheet No. 144A

GENERAL TERMS AND CONDITIONS (Continued)

(b) Notwithstanding the provisions of Section 4.1(c)(1)(a), Transporter and its Shippers

may mutually agree, on a not unduly discriminatory basis, to include in discount rate or negotiated rate

Service Agreements that bear either a multi-year seasonal term or a term of 12 or more consecutive

months of service, a contractual right of first refusal equivalent to the right of first refusal set

forth from time to time in this Section 4.

points subject to a right of first refusal may exercise its right of first refusal with respect to the

Service Agreement's Transportation Demand at only certain primary receipt and delivery point

combinations in such Service Agreement and in the same rate zone, subject to satisfaction of

Transporter's operational considerations based on pipeline configuration and design. The highest rate

that Shipper must match through the bidding process at Section 4.2 below if it wishes to continue

such service is the Recourse Rate. The right of first refusal shall be deemed to be assigned where a

Shipper holding such a right permanently releases and assigns all or a portion (volume but not

geographic portion) of the capacity under that Service Agreement, regardless of the duration of that

permanent release. Moreover, a Shipper releasing and assigning all or a portion (volume but not

geographic portion) of the capacity may structure the release so as to transfer the right of first

refusal for the duration of the release, even if that release and assignment is subject to a recall

by Shipper that would terminate that release and assignment.

(2) If Shipper intends to exercise its right of first refusal as described at paragraph

(1) above, Shipper shall notify Transporter through Transporter's EBB of that intent at least six

months before the termination date of its Service Agreement.