Tuscarora Gas Transmission Company

Original Volume No. 1

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Effective Date: 10/01/2002, Docket: RP02-471-000, Status: Effective

Second Revised Sheet No. 85 Second Revised Sheet No. 85 : Effective

Superseding: 2 Sub First Revised Sheet No. 85

GENERAL TERMS AND CONDITIONS

(iii) If two or more bids offer the same highest present value,

Transporter will prorate available capacity among the Offering

Shippers.

(i) Bid Matching Procedure. If Transporter accepts a Best Bid as a

Competing Offer for purposes of this Bid Matching Procedure,

Transporter will inform the Existing Shipper of the terms of the

Competing Offer. Within 30 days of receiving the terms of the

Competing Offer, the Existing Shipper must notify Transporter whether

the Existing Shipper agrees to match the Competing Offer. Failure to

notify Transporter within the 30 day period shall constitute an

irrevocable waiver of the Existing Shipper's Right of First Refusal

with respect to the Competing Offer. To match the Competing Offer, the

Existing Shipper must either (i) match the Competing Offer or (ii)

match the rate contained in the Competing Offer for a period of at

least five years. If the Existing Shipper agrees to match the Competing

Offer, Transporter will provide transportation service to the Existing

Shipper upon execution of a Transportation Service Agreement containing

the terms specified in the Competing Offer. If the Existing Shipper

elects not to match the Competing Offer, Transporter has pregranted

authority to abandon that service and Transporter shall have no further

obligation to render service under the Existing Shipper's

Transportation Service Agreement pursuant to Section 7 (b) of the

Natural Gas Act. Transporter will provide transportation service to

the Shipper that offered the Competing Offer upon execution of a

Transportation Service Agreement containing the terms agreed upon in

the Competing Offer. Transporter will post the terms of the accepted

offer on its Web Site.

(j) Negotiation Procedures Between Transporter and Existing Shipper.

Transporter must accept a bid as the Best Bid if there are any bids at

the maximum rate. However, if no Shipper offers a competing bid or if

there are only bids at less than the maximum rate and Transporter

rejects all such bids, Transporter and the Existing Shipper may

negotiate and mutually agree to terms and conditions applicable to a

new Transportation Service Agreement. If Transporter and the Existing

Shipper have not reached agreement on the terms and conditions for a

new Transportation Service Agreement upon termination of the existing

Transportation Service Agreement, Transporter must continue to provide

service to the Existing Shipper only if that Shipper agrees to pay the

maximum rate permitted under Transporter's FERC Gas Tariff for a term

that the Existing Shipper elects; provided, however, that an Existing

Shipper is not required to match a Competing Offer with a term greater

than five (5) years. Furthermore, the Existing Shipper must elect the

length of the extended term 60 days prior to termination of the

existing Transportation Service Agreement. If the Existing Shipper