Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-104-001, Status: Effective

First Revised Sheet No. 140 First Revised Sheet No. 140 : Superseded

Superseding: Original Sheet No. 140

GENERAL TERMS AND CONDITIONS (Continued)

24. PREGRANTED ABANDONMENT

24.1 Short Term and Interruptible Agreements

A Customer receiving service under a firm service agreement

having a primary term of less than one year ("short term firm

service agreement") or under an interruptible service agreement

retains no right to continued service after the termination of

such agreement. Upon termination of a short term or

interruptible service agreement, Pipeline shall have all

necessary abandonment authorization under the Natural Gas Act as

of such termination date, and shall not be required to seek case-

specific authorization prior to abandoning service.

24.2 Long Term Agreements -- Right of First Refusal

Service agreements which have a primary term of one year or more

and which contain a rollover or evergreen provision are not

subject to pregranted abandonment under this Section 24.

A Customer receiving service under a firm service agreement

having a primary term of one year or more ("long term firm

service agreement") which does not contain a rollover provision

may avoid pregranted abandonment of service in connection with

the termination of its service agreement and continue to receive

service by matching the rate and contract term bid by a

competing Customer in accordance with the procedures described

below. If the Customer does not satisfy the bid matching

requirements of this section, Customer shall no longer have a

right to continued service as of the effective date of Pipeline's

notice of termination. If no other bids are received and the

Customer does not agree to pay the maximum rate, and Pipeline and

the Customer do not otherwise agree on the continuation of

service, then the Customer shall no longer have a right to

continued service as of the effective date of Pipeline's notice

of termination. In the event of termination, Pipeline shall have

all necessary abandonment authorization under the Natural Gas

Act. However, a Customer agreeing to pay the maximum rate is

entitled to continued service for whatever term it chooses.

24.3 Notice and Posting

At least sixty (60) business days prior to the expiration of a

long term firm service agreement, Pipeline will serve on the

affected Customer a notice of termination advising the Customer

of the pending termination of its agreement and of the Customer's

right to retain its service entitlement by matching the rate and

contract term bid by a competing Customer. At the same time,

Pipeline will post the available capacity on its electronic

communications system and EDI, including the quantity available,

receipt and delivery points and maximum applicable rate. The

notice will remain posted for thirty (30) days until the end of

the bidding period.