Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

Effective Date: 05/21/2002, Docket: CP00- 6-004, Status: Effective

Original Sheet No. 201 Original Sheet No. 201 : Effective

GENERAL TERMS AND CONDITIONS

(CONTINUED)

31.3 Limitations. This Section 31 does not authorize

Transporter to negotiate terms and conditions of service.

31.4 Right of First Refusal. For purposes of exercising rights

to continue service pursuant to Section 29 of these General

Terms and Conditions, the highest rate that a Shipper must

match if it desires to retain all or a portion of its

capacity, and continue to receive firm service under the

same rate schedule beyond the expiration date of such long-

term firm Agreement, is the recourse rate for such service.

31.5 Accounting Treatment. Transporter shall maintain a

separate account within Account 495, Other Operating

Revenues, for recording all revenues associated with

charging negotiated rates. Transporter shall record each

volume transported, billing determinant, rate component,

surcharge, and the revenue associated with its Negotiated

Rates so that this information can be filed, separately

identified, and separately totaled, as part of and in the

format of Statements G, I, and J in Transporter's next

Section 4 rate case.