Venice Gathering System, L. L. C.

Original Volume No. 1

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Effective Date: 01/01/1998, Docket: CP97-533-002, Status: Effective

Original Sheet No. 153 Original Sheet No. 153 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

14.6 Acceptable Bids

In the event VGS does not receive any bids for

Shipper's capacity or any bids that are acceptable to VGS,

Shipper shall have the right to retain its firm capacity at

the maximum rate applicable thereto, or any negotiated

discount agreed to by VGS, for an additional term as

requested by Shipper. If Shipper refuses to renew its

existing Firm Service Agreement at the maximum rate, absent

an agreement by VGS to discount, such Service Agreement

shall be subject to abandonment upon its termination.

14.7 Abandonment

VGS shall be relieved of its transportation service

obligations for any Interruptible Service Agreement and for

any Firm Service Agreement with a primary term of less than

one (1) year, regardless of any subsequent roll-over term

provided by an evergreen provision, upon the expiration or

termination of such Service Agreement. VGS shall be

relieved of its transportation service obligations for any

Firm Service Agreement with a primary term of one (1) year

or more upon the expiration of such Service Agreement,

provided that Shipper gives notice to terminate its Firm

Service Agreement pursuant to the provisions contained

therein, or Shipper fails to match the best bid under its

right of first refusal option as described in Subsection

14.4, or Shipper fails to submit a bid acceptable to VGS.