Canyon Creek Compression Company

Third Revised Volume No. 1

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Effective Date: 09/24/2001, Docket: RP01-515-000, Status: Effective

Third Revised Sheet No. 167 Third Revised Sheet No. 167 : Effective

Superseding: Second Revised Sheet No. 167

GENERAL TERMS AND CONDITIONS

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18. PRE-GRANTED ABANDONMENT, CONTRACT ROLLOVERS AND RIGHT OF FIRST REFUSAL

18.1 GENERAL

Subject to Section 18.4, service performed by Canyon

under Part 284 of the Commission's Regulations shall expire, and

shall be automatically abandoned, upon contract termination unless

service is continued pursuant to Sections 18.2 or 18.3.

18.2 RIGHT OF FIRST REFUSAL

(a) Any Shipper under an FCS Agreement (1) executed

after March 27, 2000 with a term of twelve (12) consecutive months

or more at the applicable maximum rate or (2) with a primary term of

one (1) year or greater which was in effect on March 27, 2000 shall

have the right to continue receiving service after the expiration of

its existing Agreement if, pursuant to the Right of First Refusal

procedures set forth in this Section 18.2, it matches the price and

term offered for such service by any other bidder; provided,

however, that (irrespective of the price offered by the existing

Shipper or any bidder) Canyon shall not be required to provide

service at a discount from its applicable maximum rate unless it

otherwise agrees; and, provided further that if a bid is submitted

for a Negotiated Rate or Negotiated Rate Formula under Section 35 of

these General Terms and Conditions, the existing Shipper need match

only the value of that bid utilizing the Recourse Rate in lieu of

the Negotiated Rate or Negotiated Rate Formula consistent with said

Section 35.

(b) To exercise the Right of First Refusal, Shipper

must provide Canyon with a written notice of its intent to do so in

a form specified by Canyon and must submit such notice at least six

(6) months prior to the expiration of the existing Agreement. Such

notice must specify a desired term of service and the desired MDQ in

total and at each Receipt and Delivery Point. If the requested MDQ

is greater than the existing MDQ in total and at each Receipt and

Delivery Point, any such increase shall be treated as a request for

new service under the applicable Rate Schedule and only the original

MDQ shall be subject to the Right of First Refusal under this

Section. The Right of First Refusal may apply to a portion of the

original Shipper's then effective service. Any notice specifying a

decrease in MDQ in total or at any point shall not affect the

existing Agreement during its remaining term.