Norteño Pipeline Company

First Revised Volume No. 1

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Effective Date: 04/01/1996, Docket: CP96- 81-007, Status: Effective

Original Sheet No. 264 Original Sheet No. 264 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

Transportation Request Form, and Shipper requests

refund, Norte¤o will return the prepayment and

cancel the effectiveness of Shipper's request for

firm transportation service.

20.5 Limited Right to Purchase Firm Capacity - At any

time after the effectiveness of Norte¤o's

restructuring pursuant to Docket No. RS92-53-000,

any creditworthy party may offer in writing to pay

Norte¤o higher rate(s) for firm transportation

service than the rate(s) being paid by an existing

firm Shipper, not to exceed the maximum rates

applicable to such service pursuant to this FERC

Gas Tariff. If the existing firm Shipper is

paying less than the maximum rate(s) applicable

pursuant to its Service Agreement, and if the

existing firm Shipper's Service Agreement permits

Norte¤o to renegotiate or make adjustments to the

applicable rate(s) or discount(s), Norte¤o will so

notify in writing the existing firm Shipper, who

will then have fourteen (14) days to respond to

Norte¤o in writing that it agrees to match the

higher offer. Absent such response or an

agreement to pay the higher rate(s) from the

existing Shipper, Norte¤o will abandon firm

service to the existing Shipper when and to the

extent that it executes a new Service Agreement

with the Shipper that offered to pay the higher

rate(s) for firm transportation service.

20.6 Expiration of Interruptible and Short-Term Firm

Transportation Service Agreements - Any short-term

firm transportation Service Agreement (a term of

less than one year) or any interruptible

transportation Service Agreement will

automatically terminate upon expiration of such

Service Agreement pursuant to its terms and

conditions, with pre-granted abandonment of the

service pursuant to the Commission's Regulations.

20.7 Expiration of Long-Term Firm Transportation

Service Agreements - In the event of the

expiration of any long-term firm transportation

Service agreement (a term of one year or longer)

pursuant to its terms and conditions, the Shipper

shall have a right of first refusal to extend the