Mojave Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

Fourth Revised Sheet No. 219 Fourth Revised Sheet No. 219

Superseding: Third Revised Sheet No. 219

GENERAL TERMS AND CONDITIONS

(Continued)

4. Requests for Service (Continued)

(d) Mojave shall not be obligated to accept any offer for expiring

right-of-first-refusal capacity at less than the maximum

applicable tariff rate. For purposes of (1) determining best

bids, (2) awarding capacity and (3) applying matching

procedures, Mojave will utilize the evaluation criteria of

Section 9 of the General Terms and Conditions, and will include

any contractual transportation usage revenue commitments in the

application of such criteria. In the event Mojave accepts an

offer, Mojave shall inform the existing Shipper of the terms of

such offer. The existing Shipper shall have 10 business days

in which to inform Mojave that it agrees to match such offer as

to the entire quantity or any partial quantity. Such agreement

shall be irrevocable. The existing Shipper or the offering

Shipper, as appropriate, shall execute a Service Agreement

containing the terms offered or matched. If the existing

Shipper matches and retains only a partial quantity of one or

more of the acceptable offer(s), the remainder of the capacity

shall be allocated to the winning offering Shipper(s). If

Mojave accepts an offer which is a negotiated rate, the highest

rate that the existing Shipper must match if it desires to

retain all or a portion of its existing capacity is the maximum

applicable tariff rate.

(e) Transporter will notify the existing shipper if no acceptable

bid was received for all or a portion of the contract quantity,

pursuant to Section 4.15(d) above. Following such

notification, the existing Shipper and Transporter shall have

ten Business Days in which to mutually agree to acceptable

terms for a new firm TSA.

The existing Shipper is entitled to transportation service

under a new TSA upon the expiration of its contract if such

Shipper agrees to pay the maximum applicable tariff rate for

all or a portion of the contract quantity for which no

acceptable bid was received; however, to obtain a right-of-

first-refusal, Shipper must agree to a new TSA for all or a

portion of the contract quantity for which no acceptable bid

was received for a term of at least one Year. In the

alternative, Shipper may continue to receive service under a

new TSA if Transporter and Shipper mutually agree within the

ten Business Days to a discounted rate and term. Transporter

is not required to accept any rate less than the maximum

applicable tariff rate.