Westgas Interstate, Inc.

First Revised Volume No. 1

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Effective Date: 09/01/1993, Docket: RS92- 89-002, Status: Effective

Original Sheet No. 78 Original Sheet No. 78 : Effective

GENERAL TERMS AND CONDITIONS

23. CAPACITY RELEASE PROGRAM (Continued)

23.10 AWARDING OF RELEASED CAPACITY (Continued)

closest to the winning number, either over or

under, will win the lottery. In case of a

tie, the procedure will be repeated. Any

such lottery will be held within three (3)

business days after the close of the open

season and upon no less than one (1)

business days' notice.

(d) If the bid identified in a pre-arranged

release is for less than the applicable maximum

rate(s) or maximum term and a better offer is

received during the open season, the pre-arranged

Bidding Shipper shall have the time specified in

Section 23.8 above to match that offer. If the

pre-arranged Bidding Shipper fails to match the

better offer, then the Bidding Shipper who

presented the better offer shall become the

Acquiring Shipper.

(e) A Releasing Shipper shall retain all of the

capacity under the executed Transportation Service

Agreement or Acquired Capacity Agreement that is

not acquired by an Acquiring Shipper as the result

of an open season or a pre-arranged release.

23.11 EXECUTION OF AGREEMENTS OR AMENDMENTS - The

Acquiring Shipper obtaining released capacity shall

execute a Capacity Agreement with Transporter in the

form set forth in Section 23.24 which will be provided

on Transporter's Electronic Bulletin Board system.

Service can begin once the Agreement on the Electronic

Bulletin Board has been executed. A formal Capacity

Agreement will be sent to the Acquiring Shipper within

five (5) business days of the Execution of the Capacity

Agreement on the Electronic Bulletin Board. The formal

Capacity Agreement shall be signed and returned to

Transporter within ten (10) business days after receipt

by Acquiring Shipper.