Williams Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 10/01/1993, Docket: RS92- 12-003, Status: Effective

Original Sheet No. 216 Original Sheet No. 216 : Superseded

GENERAL TERMS AND CONDITIONS

6. RIGHT OF FIRST REFUSAL AT EXPIRATION OF AGREEMENTS (Cont'd)

6.3 Prepayment

To ensure that competing bids are bona fide, the bidding party

must tender a prepayment and meet the credit-worthiness

requirements, both as set forth in Article 8.

6.4 No Bids Received

If no bids are received, service may continue at a negotiated

rate and term, but in no event shall WNG be required to provide

service at less than maximum rates. If no bids are received and

the existing capacity holder bids the maximum rate, the existing

capacity holder may choose any term for the new service agreement

consistent with Article 7.

6.5 Acceptance of Bids

WNG is not required to provide service at any rate less than the

maximum rate is, or charge is, specified on Tariff Sheet No. 6 or

6a.

7. SERVICE AGREEMENT AND TERM

The rights and obligations of WNG and each Shipper shall be governed

by the executed service agreement between the parties.

The term shall be governed by mutual agreement. Agreements for

service having a primary term of less than five years shall not

contain evergreen provisions. Agreements for service having a

primary term of at least five years will continue for successive five

year terms thereafter, unless cancelled, effective at the end of the

primary term or at the end of any subsequent five year term, by two

years advance written notice by either party.

Service agreements and the terms thereof are governed by the Natural

Gas Act, the Natural Gas Policy Act and FERC regulations promulgated

thereunder.