Horizon Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 198 Original Sheet No. 198 : Effective

GENERAL TERMS AND CONDITIONS

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under Section 17.2(b), Horizon shall post via DART an Announcement of

Capacity Availability Subject to Right of First Refusal (Capacity

Announcement) which shall: (1) specify the original Shipper's service

rights; (2) indicate the availability of such service as of the date

the existing Agreement expires, subject to the Right of First Refusal;

(3) state the maximum rate applicable to such service; (4) set out any

other information required by this Section; and (5) solicit bids for

such service. Such Capacity Announcement shall be maintained, and bids

accepted via DART, for a period of one (1) month from the initial

posting.

(d) (1) Within one (1) week after the end of the one

month period during which the Capacity Announcement is posted, Horizon

shall convey to the original Shipper a term sheet for the best bid

(based on price and term) which would qualify for such service in all

respects (including meeting applicable credit criteria), which is a

bona fide bid and which Horizon is willing to accept. Horizon may, but

is not required to, accept any bid which reflects a discount from the

applicable maximum rate. In assessing which is the best bid if more

than one bid is received, Horizon shall apply the same criteria as are

utilized to allocate firm capacity pursuant to Section 3.1 (except

that contract terms in excess of five years shall not increase the

value of any bid). If a bid is received for a Negotiated Rate or

Negotiated Rate Formula pursuant to Section 33 of these General Terms

and Conditions, the value of the bid shall be assessed utilizing the

Recourse Rate in lieu of the Negotiated Rate or Negotiated Rate

Formula consistent with said Section 33.

(2) Horizon's term sheet shall contain any and all

terms of the bid but shall not identify the bidder; provided, however,

such bid sheet shall indicate if the best bid was submitted by an

affiliate of Horizon. Except for the providing of such term sheet to

the original Shipper, all terms and conditions of any bid and the

identity of the bidder shall remain confidential; provided that the

Commission may on request have access to such information on a

confidential basis.

(3) The original Shipper shall have two (2) weeks

to notify Horizon whether or not it desires to match the best bid.

To match the best bid, the original Shipper must agree to a price

(up to the applicable maximum rate or Recourse Rate) and a term (up

to five years) which at least equals the bid on all or any portion

of the service the original Shipper desires to retain; provided,