Petal Gas Storage Company

Original Volume No. 1

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Effective Date: 12/17/1993, Docket: CP93- 69-002, Status: Effective

Original Sheet No. 14 Original Sheet No. 14 : Effective









If, due to any cause whatsoever, Petal's capability to

receive or deliver volumes is impaired so that Petal is unable

to receive or deliver the volumes provided for in its FSS

Agreements with Customers, then capacity, withdrawals and/or

injections will be allocated according to the priority of

service as set forth in Section 4 of the General Terms and

Conditions of this Tariff.





10.1 Right of First Refusal at End of Contract Term.

Petal may discontinue service to a Customer at the end of the

primary term or any renewed term of the Customer's FSS

Agreement unless (i) the Customer exercises any applicable

renewal right in the FSS Agreement; or (ii) in the case of a

long term FSS Agreement, the Customer exercised its right of

first refusal for the capacity covered by the FSS Agreement by

matching the terms offered to Petal during an open season for

such capacity by any qualified prospective successor customer.

Petal shall retain its right to require a minimum rate for

bids during any such open season. In determining which bid

for the capacity is the highest, Petal will use the present

value formula set forth in Section 4 of the General Terms and

Conditions of Petal's Tariff. A "long term FSS Agreement," as

that term is used in this Section is an FSS Agreement having a

primary term greater than or equal to five (5) years. A

prospective successor customer is "qualified," within the

meaning of this section, if such prospective successor

customer meets the creditworthiness criteria set forth in

Section 3 of the General Terms and Conditions of this Tariff.


10.2 Exercise of Right of First Refusal. Upon

expiration of the open season, Petal will communicate the

terms of the highest bid received from a qualified successor

customer to the current capacity holder, who may elect, within

ten (10) Business Days or such greater time as Petal may

specify, to execute a renewal FSS Agreement upon the same

terms. If the current capacity holder does not elect to match

the terms of such highest bid, its FSS Agreement will expire

at the conclusion of its term, and Petal may enter into a new