Westgas Interstate, Inc.

First Revised Volume No. 1

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

Second Revised Sheet No. 89 Second Revised Sheet No. 89 : Effective

Superseding: First Revised Sheet No. 89

GENERAL TERMS AND CONDITIONS

(Continued)

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

26.4 AVAILABILITY OF CAPACITY - (Continued)

(b) the receipt and delivery point(s) at which

capacity is available;

(d) the maximum applicable rate for the same class of

service (i.e., Reservation charge and Usage charge

applicable to each delivery point).

(e) Transporter shall provide, upon request,

operationally available capacity separate from

unsubscribed capacity.

26.5 NOTIFICATION - Ten (10) business days after the close

of the Bid Period, Transporter shall notify the existing

shipper of any offers deemed superior to the Shipper's

proposed terms of extension based on the net present value

of the reservation charge to be paid under such bids and

the proposed term, discounted at Transporter's then

effective rate of return on equity. The term of any

competing offer shall be capped at twenty (20) years for

comparison purposes. If a superior offer is not received,

and if Shipper agrees to pay the maximum applicable rate

for the same class of service (i.e. reservation charge and

usage charge applicable to each delivery point), Shipper's

offer will be accepted by Transporter without further

conditions. If a superior offer is received, Shipper must

notify Transporter within ten (10) business days after

notification from Transporter of Shipper's intent to match

the highest competing offer and a new firm Transportation

Service Agreement shall be executed. If Shipper fails to

provide such notification within the required time,

Transporter shall be free to enter into a Transportation

Service Agreement with the highest bidder.

26.6 BIDS FOR CAPACITY - Potential Shippers desiring to

acquire available capacity shall notify Transporter via

its Electronic Bulletin Board. A potential Shipper's bid

for capacity must include the following:

(a) the potential shipper's legal name and, if

applicable, the contract number(s) under which it

desires to acquire capacity;

(b) the delivery and receipt point(s)