Tuscarora Gas Transmission Company

First Revised Volume No. 1

Effective Date: 07/01/2009, Docket: RP09-8-002, Status: Effective

Substitute Original Sheet No. 162 Substitute Original Sheet No. 162

Superseding: Original Sheet No. 162

GENERAL TERMS AND CONDITIONS

27. PREGRANTED ABANDONMENT & THE RIGHT OF FIRST REFUSAL (Continued)

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

firm (or Limited Firm) 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", subject to the

procedures outlined below. The Right of First Refusal does not apply

to interim service agreements for capacity that has been reserved for a

future expansion project as set forth in Section 33 of these General

Terms and Conditions. Similarly the Right of First Refusal does not

apply to interim service agreements for capacity that has been reserved

by Transporter and has been sold on a prearranged basis pursuant to

Section 3.2(a) of these General Terms and Conditions.

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(d) below. To the extent the

Existing Shipper either satisfies the Bid Matching Procedures of

Section 27.5(h) or reaches mutual agreement with Transporter pursuant

to Section 27.5(i), 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(h), or if Transporter and the

Existing Shipper fail to reach mutual Agreement under Section 27.5(i),

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.