Steckman Ridge, LP

Original Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-389-000, Status: Effective

Original Sheet No. 35 Original Sheet No. 35

FSS RATE SCHEDULE

FIRM STORAGE SERVICE

(Continued)

8. CONTRACTUAL RIGHT OF FIRST REFUSAL

8.1 Steckman Ridge may discontinue service to Customer at the end of a

primary term or a renewal term of a Firm Storage Service Agreement

unless (i) Customer's Firm Storage Service Agreement contains a

contractual right of first refusal which was negotiated on a not

unduly discriminatory basis, and (ii) Customer exercises its

contractual right of first refusal for the capacity covered by the

Firm Storage Service Agreement by matching the terms offered to

Steckman Ridge during an open season conducted pursuant to Section

3.8 of the General Terms and Conditions of this FERC Gas Tariff,

for such capacity by any Qualified Successor Customer.

8.2 Exercise of Right of First Refusal.

(a) Not less than three (3) months prior to the termination of a

Firm Storage Service Agreement subject to a contractual

right of first refusal, an open season will be held for the

purpose of awarding the capacity that is to become available

upon the termination of such Firm Storage Service Agreement.

This open season will be conducted pursuant to the terms and

conditions specified in Section 3.8 of the General Terms and

Conditions of this FERC Gas Tariff.

(b) Bids from Qualified Successor Customers who desire the

capacity to be made available upon the termination of such

Firm Storage Service Agreement must be submitted to Steckman

Ridge no later than thirty (30) days after commencement of

the open season. For the purposes of this Section 8, a

"Qualified Successor Customer" shall mean a prospective

successor Customer who meets the creditworthiness criteria

specified in Section 4 of the General Terms and Conditions

of this FERC Gas Tariff. Upon expiration of the open

season, Steckman Ridge will select the highest acceptable

bid received from a Qualified Successor Customer and, within

three (3) Business Days of such selection, communicate the

terms of the highest acceptable bid to Customer. Such

Customer may elect, within ten (10) Business Days or such

greater time as Steckman Ridge may specify, to execute a

renewal Firm Storage Service Agreement for the same or

better terms as contained in the highest acceptable bid

received from a Qualified Successor Customer. Customer's

right of first refusal under this Section 8.2 shall attach

irrespective of which party provides written notice of

termination in accordance with Section 3 of Customer's Firm

Storage Service Agreement. In determining which bid for the

capacity is the highest, Steckman Ridge will use the

evaluation method specified in the notice of the open season

posted on its Internet Web site.