Petal Gas Storage Company

Original Volume No. 1

Effective Date: 10/01/2002, Docket: RP02-435-000, Status: Pending

First Revised Sheet No. 80 First Revised Sheet No. 80 : Pending

Superseding: Original Sheet No. 80

FTS RATE SCHEDULE (Continued)

10. RIGHT OF FIRST REFUSAL AND PREGRANTED ABANDONMENT

10.1 Applicability

(a) Any Customer receiving firm transportation service under an

executed FTS Agreement that has a primary term of one (1) year

or more, and that does not have an evergreen provision, may

exercise its right of first refusal in order to retain firm

transportation service at the expiration of the primary term.

Any Customer receiving firm transportation under a FTS Agreement

that has a primary term of one (1) year or more, and that has an

evergreen provision, may exercise its right of first refusal in

order to retain continued firm transportation in the event that

Petal provides notice, as allowed by such Service Agreement,

that it will terminate the FTS Agreement at the expiration of

the primary term or any roll-over term.

(b) Any Customer receiving transportation service provided under a

FTS Agreement that has a primary term of less than one (1) year,

and that may or may not have an evergreen provision, does not

have the right of first refusal to retain its firm

transportation service at the expiration of a primary term or

any subsequent roll-over term.

10.2 Posting of Capacity. At least thirty (30) days prior to the effective

termination date of a FTS Agreement with a primary term of one (1) year

or more, whether such date is specified in the FTS Agreement or Petal's

notice of termination as allowed by such FTS Agreement, Petal shall

post on its Internet website the capacity that will be available upon

the termination of a Customer's FTS Agreement and whether such capacity

is subject to an existing Customer's right of first refusal. The

capacity will be posted for not less than five (5) business days.

10.3 Bidding On Capacity. Upon posting of available capacity, Petal shall

receive bids in writing from eligible bidders who have executed a FTS

Form of Service Agreement. Bids must be submitted on Petal's Internet

website or in writing and must be received by Petal no later than the

bid deadline. Petal will post the relevant terms of all eligible bids,

other than the bidder's name, upon receipt of each bid received by

Petal. Petal will determine the best bid in accordance with the

criteria set forth in Section 4.2 of the General Terms and Conditions

of this Tariff.