Western Gas Interstate Company

Third Revised Volume No. 1

Effective Date: 06/01/1993, Docket: RS92- 53-004, Status: Effective

First Revised Sheet No. 290 First Revised Sheet No. 290 : Superseded

Superseding: Revised Sheet No. 290

GENERAL TERMS AND CONDITIONS

(continued)

quantity(ies), rate(s) and term of the offer. Such an

offer must be accompanied by a valid request for firm

transportation service pursuant to Section 20 of these

General Terms and Conditions.

(d) The best offer will be determined by calculating the

net present value of the reservation charge as

follows:

-n

NPV = R*C*(1-(1+I) )/I

where: NPV = Net Present Value

R = Reservation Charge bid

C = Capacity, stated in MMBTU

I = Commission interest rate

n = term of release, in months.

In the event of a tie a lottery will be used.

(e) Within 48 hours of the end of the posting period,

Western will notify the existing firm Shipper of the

quantity(ies), rate(s) and term of the best offer

received, if any. Shipper shall have seven days to

notify Western in writing that it agrees to match the

rate(s) and term of the best offer, but in no case

more than Western's maximum applicable tariff rate(s)

and a term of 20 years.

(f) If the Shipper matches the best offer as provided

herein, Western shall execute a firm transportation

Service Agreement for the quantity(ies) and term, and

at the rate(s) as agreed. If the Shipper does not

notify Western, or does not agree to match the best

offer as specified herein, such Shipper's Service

Agreement shall expire pursuant to its terms and

conditions, with pre-granted abandonment of the

service pursuant to the Commission's Regulations, and

Western shall execute a new Service Agreement with the

Shipper that submitted the best offer.