Tuscarora Gas Transmission Company

Original Volume No. 1

Effective Date: 11/21/2003, Docket: RP04- 28-000, Status: Effective

First Revised Sheet No. 81 First Revised Sheet No. 81 : Effective

Superseding: Original Sheet No. 81

GENERAL TERMS AND CONDITIONS

27.4 Pregranted Abandonment of Transportation Service Agreement. Upon

the expiration, cancellation or termination of a Transportation

Service Agreement, Transporter has pregranted authority to abandon

that service pursuant to Section 7(b) of the Natural Gas Act, and

Transporter shall have no further obligation to render service under

the Transportation Service Agreement unless the Existing Shipper

exercises a Right of First Refusal as prescribed in Section 27.5

below.

27.5 Right of First Refusal.

(a) Existing Shipper's Right of First Refusal. Upon expiration of a

Transportation Service Agreement subject to this Section 27.5(a), and

provided that the Existing Shipper meets the standards of Section 3.5 of

these General Terms and Conditions, the Existing Shipper will have a

"Right of First Refusal". The Existing Shipper may elect to retain all

or a portion of the capacity subject to its Right of First Refusal. If

the Existing Shipper elects to retain only a portion of the available

capacity, Transporter has pregranted authority to abandon the remaining

service pursuant to Section 7(b) of the Natural Gas Act, and Transporter

shall have no further obligation to render that remaining service under

the Transportation Service Agreement. Upon receipt of a Notice of

Election from an Existing Shipper, Transporter will post information

relevant to the notice, as provided in Section 27.5(c) below. To the

extent the Existing Shipper either satisfies the Bid Matching Procedures

of Section 27.5(i)or reaches mutual agreement with Transporter

pursuant to Section 27.5 (j), Transporter will continue service to the

Existing Shipper upon execution of a Transportation Service Agreement

containing the agreed-upon terms. If the Existing Shipper fails to

satisfy the Bid Matching Procedures of Section 27.5(i), or if

Transporter and the Existing Shipper fail to reach mutual Agreement

under 27.5(k), Transporter has pregranted authority to abandon the

Existing Shipper's service pursuant to Section 7(b) of the Natural Gas

Act, and Transporter shall have no further obligation to render service

under the Existing Shipper's Transportation Service Agreement as of the

date of termination of the Transportation Service Agreement.