Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 04/14/2003, Docket: RP03-307-001, Status: Effective

Fifth Revised Sheet No. 18 Fifth Revised Sheet No. 18 : Effective

Superseding: First Revised Third Revised Sheet No. 18

RATE SCHEDULE FTS-1

Firm Transportation Service

(continued)

13. RIGHT OF FIRST REFUSAL

A. For any FTS-1 Shipper who has executed a Service Agreement in effect prior

to March 27, 2000 (grandfathered) which contains a term of one year or

longer, or for any FTS-1 Shipper who permanently replaces a releasing FTS-1

Shipper under an FTS-1 Service Agreement in effect prior to March 27, 2000

(grandfathered) which contained an original term of one year or longer, or

any FTS-1 Shipper who has executed a Service Agreement on or after

March 27, 2000, which contains a term of one year or longer at the maximum

rate, the Shipper shall have a "right of first refusal" as specified below

with respect to the reservation of firm capacity upon termination of the

service agreement; except for any capacity that is already under contract to

a third party for a future period and that is expressly sold to Shipper

without a right of first refusal. If the Shipper does not notify Transporter

(as required in paragraph C below) before the expiration of the Service

Agreement as to whether it desires to extend the Service Agreement, then no

right of first refusal shall accrue to the Shipper. All available capacity

shall be allocated under these procedures, and Transporter will not maintain

a firm transportation queue. Transwestern and Shipper may mutually agree to

include ROFR rights on a not unduly discriminatory basis.

B. Nothing herein shall be deemed to prohibit the firm Shipper from

negotiating a new Service Agreement with the Transporter, nor from

extending the term of the Shipper's existing Service Agreement in

accordance with the terms thereof.

C. The Shipper will notify Transporter in writing as to whether it desires to

extend the Service Agreement at least: (i) six (6) months before the

expiration of Service Agreements with a term of two years or less, or (ii)

one year before the expiration of Service Agreements with a term exceeding

two years. If the Shipper does wish to extend its Service Agreement at

maximum rates for its full volume for a mutually agreeable term, then the

Transporter and Shipper will execute a new Service Agreement. If the Shipper

does not wish to so extend its Service Agreement, then Transporter will,

within ten business days, begin soliciting bids from other parties, by posting

notice of the available capacity, and all pertinent data on Transporter's

Website.

D. Transporter shall include in its notice of available capacity:

(a) the quantity (MMBtu/day)

(b) the primary receipt and delivery points

(d) the deadline for submitting bids

(e) whether transporter is willing to consider bids at less than maximum

tariff rates for all or any portion of the capacity or term.

(f) the maximum tariff rate for the applicable capacity.

Transporter shall then evaluate the bids as follows: