Western Gas Interstate Company

Fourth Revised Volume No. 1

Effective Date: 04/01/1996, Docket: CP96- 81-006, Status: Effective

Original Sheet No. 138 Original Sheet No. 138 : Effective

RATE SCHEDULE RCS

FIRM TRANSPORTATION SERVICE - RELEASED CAPACITY

(continued)

(e) With respect to any notice of a pre-arranged

release which has been posted for bidding, if the

posting results in a better offer then the pre-

arranged bidder shall have two (2) business days

after notification of such better offer in which

to match such better offer. A pre-arranged bidder

matching the better offer shall be awarded the

Released Capacity.

(f) With respect to any notice of a pre-arranged

release for a period of less than 31 days, a firm

shipper may not extend or roll-over such release

without posting for bids in accordance with

Section 6(c) of this Rate Schedule, and may not

re-release to the same replacement shipper until

twenty-eight days after the first release period

has ended unless the release is at Western's

maximum tariff rate applicable to the

Transportation Rate Schedule under which the

capacity is being released.

7. QUALIFICATION TO PARTICIPATE AS A BIDDING SHIPPER:

Any party wishing to become a Bidding Shipper and

participate in Western's Released Capacity Service

under this Rate Schedule must submit a valid Released

Capacity Service Request Form and satisfy the

creditworthiness requirements of Western's FERC Gas

Tariff applicable to transportation service. Such a

party may not id on released capacity without first

satisfying the creditworthiness requirements and

receiving notice from Western of its approval as a

Bidding Shipper and its level of creditworthiness. A

Bidding Shipper may not bid for quantities of released

capacity in excess of its approved creditworthiness.

Continued violation by a Bidding Shipper of the terms

of this Section 7 or any other terms and conditions of

this Rate Schedule after written notice from Western

will result in suspension of such Shipper's

qualification as a Bidding Shipper for a period of one

(1) year. The form to be used for making requests for

Released Capacity Service is set forth in these General

Terms and Conditions, beginning at Sheet No. 200, and

is available from Western upon request.