Western Gas Interstate Company

Fourth Revised Volume No. 1

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

Original Sheet No. 238 Original Sheet No. 238 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

paying less than the maximum rate(s) applicable

pursuant to its Service Agreement, and if the

existing firm Shipper's Service Agreement permits

Western to renegotiate or make adjustments to the

applicable rate(s) or discount(s), Western will so

notify in writing the existing firm Shipper, who

will then have fourteen (14) days to respond to

Western in writing that it agrees to match the

higher offer. Absent such response or an

agreement to pay the higher rate(s) from the

existing Shipper, Western will abandon firm

service to the existing Shipper when and to the

extent that it executes a new Service Agreement

with the Shipper that offered to pay the higher

rate(s) for firm transportation service.

20.6 Expiration of Interruptible and Short-Term Firm

Transportation Service Agreements - Any short-term

firm transportation Service Agreement (a term of

less than one year) or any interruptible

transportation Service Agreement will

automatically terminate upon expiration of such

Service Agreement pursuant to its terms and

conditions, with pre-granted abandonment of the

service pursuant to the Commission's Regulations.

20.7 Expiration of Long-Term Firm Transportation

Service Agreements - In the event of the

expiration of any long-term firm transportation

Service agreement (a term of one year or longer)

pursuant to its terms and conditions, the Shipper

shall have a right of first refusal to extend the

term of its Service Agreement, as specified

herein. Western will automatically extend the

term of a Shipper's long-term firm transportation

Service Agreement pursuant to the terms of any

evergreen or rollover provision contained therein,

unless such Shipper provides a written request to

Western to terminate the Service Agreement.

(a) At least three (3) months prior to the

expiration of the Service Agreement, Shipper

shall provide written notice to Western of

its election to exercise its right of first

refusal to extend the term of its Service

Agreement.