MidContinent Express Pipeline LLC

Original Volume No. 1

Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective

Original Sheet No. 114 Original Sheet No. 114

GENERAL TERMS AND CONDITIONS

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2. PRIORITY OF SERVICE

2.1 ALLOCATION OF CAPACITY

(a) GENERAL

This Section 2.1 governs the allocation of firm

capacity on MEP's System among entities requesting firm services in

assigning priority to otherwise valid requests for any particular

firm service. In applying such criteria where a Negotiated Rate or

Negotiated Rate Formula is involved, the value assigned to a request

which includes a Negotiated Rate or Negotiated Rate Formula shall be

limited by the Recourse Rate as provided in Section 30 of these

General Terms and Conditions. MEP shall not be required to grant

otherwise valid requests at less than the applicable maximum rate,

but may do so on a non-discriminatory basis.

(b) CAPACITY AWARD PROCEDURES

This Section 2.1(b), together with Sections 2.1(c)

and 16 of these General Terms and Conditions, sets out the

procedures to be followed by MEP in awarding all firm forward-haul

transmission capacity becoming available on its System; provided,

however, that these procedures do not apply to the initial

allocation of such firm capacity created by the construction of new

facilities (including the initial construction and any extensions

and expansions of MEP's System). The allocation of Preapproved

Capacity is subject to contractual provisions entered into with

Foundation Shippers pursuant to Section 2.7 of Rate Schedule FTS.

(1) INITIAL OPEN SEASON

MEP shall conduct an Initial Open Season for

all firm forward-haul transmission capacity becoming available on

its System; provided, however, that the Initial Open Season

procedure shall not apply (and the capacity shall not be considered

as available or becoming available) where an existing Shipper has

the right of first refusal or other rollover right under Section 16

of these General Terms and Conditions unless and until all such

rollover rights have expired or, if the right of first refusal is

exercised, the right of first refusal process has concluded and the

capacity has not been awarded; and provided further that the

allocation of capacity shall be subject to contractual provisions

entered into with Foundation Shippers pursuant to Section 2.7 of

Rate Schedule FTS.