El Paso Natural Gas Company

First Revised Volume No. 1-A

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Effective Date: 10/01/1993, Docket: RS92- 60-016, Status: Effective

Original Sheet No. 240M Original Sheet No. 240M : Superseded







20.16 Right-of-First-Refusal (Continued)


(ii) Shipper's bid must include:


(a) Shipper's legal name and, if applicable, the

contract number under which it desires to

acquire capacity;


(b) the quantity of capacity to be acquired at each

delivery point(s);


(c) the term of the acquisition (the maximum term

used for bid evaluation will be twenty (20)

years); and


(d) the maximum rate Shipper is willing to pay for

the capacity.


(iii) The potential Shipper must satisfy the other

provisions of this Tariff applicable to requests for

firm transportation.


(d) El Paso shall not be obligated to accept any offer for

such capacity at less than the maximum applicable tariff

rate. In the event El Paso accepts an offer, however, El

Paso shall inform the existing Shipper of the terms of

such offer. The existing Shipper shall have seven (7)

days in which to inform El Paso that it agrees to match

such offer. Such agreement shall be irrevocable. The

existing Shipper or the offering Shipper, as appropriate,

shall execute a Transportation Service Agreement

containing the terms offered or matched.


(e) In the event there are no competing offers, then the

existing Shipper shall not be entitled to continue to

receive transportation service upon the expiration of its

contract except by agreeing to pay the maximum tariff

rate unless El Paso and such Shipper shall enter into a

new firm transportation service agreement providing