El Paso Natural Gas Company

First Revised Volume No. 1-A

Effective Date: 10/01/1993, Docket: RS92- 60-016, Status: Effective

Original Sheet No. 240L Original Sheet No. 240L : Superseded

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

20. OPERATING PROVISIONS FOR FIRM TRANSPORTATION SERVICE

20.16 Right-of-First-Refusal

(a) Upon expiration of the term of the Transportation

Service Agreement of a long term Shipper, such Shipper

shall have a "right-of-first-refusal" as prescribed in

this Section 20.16. In order to avail itself of its

right-of-first-refusal, the Shipper must give El Paso

its written notice of intent to exercise such right of

first refusal not later than (i) the date of the notice

period provided for in Shipper's contract; or

(ii) twelve (12) months prior to the expiration of the

term of the contract, whichever shall first occur.

(b) El Paso shall post on its electronic bulletin board the

terms and conditions of the available capacity under the

expiring contract as follows:

(i) firm daily quantities stated in Mcf/d;

(ii) the delivery point(s) at which capacity is

available and the firm quantities at such point(s);

(iii) effective date;

(iv) term;

(v) the rate (i.e., Reservation Charge(s) and Usage

Charge(s) applicable to each delivery point);

(vi) minimum conditions; and

(vii) the criteria by which bids are to be evaluated.

basis and will be assigned on the basis of an open

season for a period of not less than ninety (90) days

duration.

(i) Shipper(s) desiring to acquire such available

capacity shall notify El Paso, via its electronic

bulletin board, during the open season. Such

notice shall be binding once received by El Paso

and shall not be revocable by such Shipper.