Discovery Gas Transmission LLC

Original Volume No. 1

Effective Date: 09/01/2000, Docket: RP00-423-001, Status: Effective

First Revised Sheet No. 167 First Revised Sheet No. 167 : Effective

Superseding: Original Sheet No. 167

12. PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL

12.1 PREGRANTED ABANDONMENT - Transporter's obligation to

provide services to Shipper under any Effective Service

Agreement will expire and such service will be

automatically abandoned at the end of the term specified

in such Service Agreement, unless the Service Agreement

is subject to a right of first refusal.

12.2 APPLICABILITY OF RIGHT OF FIRST REFUSAL -

A shipper receiving Firm Transportation service under an

Effective FT-1 Service Agreement may exercise its right

of first refusal in order to retain firm transportation

service at the expiration of the primary term under the

following conditions: (a) the Effective Service Agreement

is at the maximum tariff rate and for a term of twelve

(12) or more Months of consecutive service, or (b) the

Effective Service Agreement was entered into prior to

February 9, 2000, at less than the maximum tariff rate

for a term of one (1) Year or more, or (c) the Effective

Service Agreement is at a Negotiated Rate and was entered

into prior to February 9, 2000, for a term of one (1)

Year or more. The right of first refusal will not apply

to Firm Service Agreements at a discounted rate or

Negotiated Rate, or with a term of less than twelve (12)

consecutive Months of service, during any extension or

roll-over term unless the Service Agreement is re-

executed at the maximum tariff rate.

Any Shipper receiving Firm Transportation service under

an Effective FT-2 Service Agreement may retain Firm

service under an FT-1 Service Agreement by exercising its

right of first refusal with respect to the quantity of

Gas by which its FT-2 Service Agreement has been reduced

for each Contract Year, subject to the same conditions

set forth herein with respect to shippers receiving Firm

Transportation under FT-1 Service Agreements.