Mojave Pipeline Company

Second Revised Volume No. 1

Effective Date: 03/22/2010, Docket: RP10-330-000, Status: Effective

Original Sheet No. 275 Original Sheet No. 275

GENERAL TERMS AND CONDITIONS

(Continued)

35. CONTRACT EXTENSION AND RENEWAL (Continued)

35.4 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 34.7(b) 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.

35.5 Transporter will notify the existing shipper if no acceptable

bid was received for all or a portion of the contract

quantity, pursuant to Section 35.4 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.