Tuscarora Gas Transmission Company

First Revised Volume No. 1

Effective Date: 04/01/2009, Docket: RP09-08-000, Status: Effective

Original Sheet No. 165 Original Sheet No. 165

GENERAL TERMS AND CONDITIONS

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

27.5 Right of First Refusal. (Continued)

(g) Transporter's Review of Offering Shippers' Bid. Transporter will

review all Offering Shippers' bids on a nondiscriminatory, objective

basis and determine the Best Bid and whether the Best Bid any other

bids are acceptable to Transporter. Transporter will notify Existing

Shipper of any acceptable bid(s) as soon as practicable; provided,

however, Transporter will not be obligated to accept any offer for

transportation service at less than Transporter's maximum applicable

rate:

(i) Acceptable bids will be those having the highest economic value

as determined in Section 3.2(c);

(ii) If two or more bids offer the same economic value as determined

in Section 3.2(c), Transporter will prorate available capacity

among the Offering Shippers; and

(iii) The present value of revenues to be received from a Shipper

bidding a Negotiated Rate shall be calculated using the proposed

reservation charge revenues and any proposed usage charge

revenues guaranteed by a minimum volume commitment or otherwise.

Where the Negotiated Rate is based on a Negotiated Rate Formula,

the future value of which cannot be determined at the time of the

bidding, Transporter shall estimate the future revenues to be

received under the Negotiated Rate Formula using currently

available data.