East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 10/01/2000, Docket: RP00-534-000, Status: Effective

Original Sheet No. 115A Original Sheet No. 115A : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

(b) The right of first refusal shall be applicable only to (i)

firm service agreements requiring the payment of the maximum

applicable tariff rate with a primary term of at least

twelve (12) months of consecutive service, or (ii) firm

service agreements requiring the payment of the maximum

applicable tariff rate with a primary term of more than one

(1) year for service which is not available for twelve (12)

consecutive months. Service agreements which include

negotiated rates and/or discounted rates shall not be

eligible for the right of first refusal, with the exception

that any service agreement executed prior to October 1,

2000, shall be granted a one-time exemption and the right of

first refusal provisions described in this section shall

apply; provided, however, that the right of first refusal

shall be applicable to a service agreement entered into or

re-executed to supersede a contract grandfathered under the

prior provision only if the new service agreement meets the

requirements of (i) and (ii) above.

If Shipper elects to exercise its right of first refusal and

has so notified Transporter of that election in accord with

the provisions of the applicable service agreement, then the

following procedures will apply:

(1) Transporter shall post the capacity for bidding on

PASSKEY 180 days prior to the termination of the

service agreement. The capacity will remain posted on

PASSKEY for a minimum of 20 days with such posting

containing the following information with respect to

the capacity:

(i) daily and other applicable quantity limitations

of capacity available;

(ii) primary receipt and delivery points;