Westgas Interstate, Inc.

First Revised Volume No. 1

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Effective Date: 04/01/2003, Docket: RP00-545-001, Status: Effective

First Revised Sheet No. 88 First Revised Sheet No. 88 : Effective

Superseding: Original Sheet No. 88

GENERAL TERMS AND CONDITIONS

26. RIGHT-OF-FIRST-REFUSAL (Continued)

26.2 APPLICABILITY - This Section 26 is applicable to

any Shipper with a Transportation Service Agreement of

one (1) year or longer, that does not contain an

"evergreen" clause. For firm Transportation Service

Agreements which contain an "evergreen" provision,

Shipper's right to continued service shall be governed by

the terms of the "evergreen" provision. Any capacity

which becomes available under an agreement not containing

an "evergreen" provision shall be posted in the manner

set forth in Section 26.3 below.

26.3 NOTICE BY SHIPPER - As provided herein, Shipper

shall notify Transporter of its intention to extend the

terms of the existing agreement or to allow the

agreement to expire. For firm agreements of three (3)

years or less, such notice shall be received by

Transporter on or before six (6) months prior to the

expiration date of the agreement (Notice Period) or

such other Notice Period as may be provided for in the

agreement. For firm agreements greater than three (3)

years in term, notice shall be received by Transporter

on or before twelve (12) months prior to the expiration

date of the agreement (Notice Period) or such other

Notice Period as may be provided for in the agreement.

Shipper's notice shall set forth the rate and term at

which Shipper proposes to extend the agreement. If

Shipper fails to provide the required notice,

Shipper's rights to capacity under the Agreement shall

terminate upon the expiration date of the agreement as

provided herein.

26.4 AVAILABILITY OF CAPACITY - Beginning not less than

thirty (30) business days after the receipt of Shipper's

required notice, and continuing for thirty (30) days

(Bid Period), Transporter shall post on its Electronic

Bulletin Board notice of the capacity which is

available as a result of the expiring agreement. Any

party may submit a bid for the subject capacity during

the Bid Period. In soliciting bids for the available

capacity, WestGas InterState shall post the terms and

condition of the available capacity under the expiring

contract as follows:

(a) firm daily quantities stated in Mcf/d;