Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 08/01/1996, Docket: RP96-288-000, Status: Effective

First Revised Sheet No. 27 First Revised Sheet No. 27 : Superseded

Superseding: Original Sheet No. 27

RATE SCHEDULE FTS (Continued)

Firm Transportation Service

3. RATE

Customer shall pay Pipeline for service, including gathering service if

applicable, rendered hereunder during each monthly billing period an

amount which is the sum of the following, plus applicable GRI charge and

ACA funding charge as set out in Sections 28 and 29, respectively, of

this Tariff.

3.1 Reservation Charges: An amount equal to Customer's Maximum

Daily Contract Transportation Quantity ("MDCTQ") plus

gathering service, if applicable, specified in the

executed Transportation Service Agreement multiplied by the

Daily Reservation Charges specified in the Currently Effective

Rates, Sheet Nos. 4 and 5 of this Tariff for this rate schedule.

3.2 Commodity Charges: An amount equal to the volume of gas

transported plus gathering service, if applicable, by Pipeline

for Customer during the billing period multiplied by the Total

Commodity Charges specified in the Currently Effective

Rates, Sheet Nos. 4 and 5 of this Tariff for this rate schedule.

4. REIMBURSEMENT OF REGULATORY EXPENSES

Customer shall reimburse Pipeline for all regulatory filing fees

incurred by Pipeline to provide service under Customer's executed

service agreement, as it may be amended, revised or superseded from

time to time.

5. MINIMUM BILL

The reservation charge.

6. RECEIPTS AND DELIVERIES

(a) Customer will make deliveries of gas to Pipeline for

transportation hereunder at mutually agreeable points of receipt

on Pipeline's system, as described in the executed service

agreement. Prior to the initial receipt of such gas, Customer

shall reimburse Pipeline the cost of any facilities that Pipe-

line may have agreed to install to receive, meter, transport or

deliver Buyer's gas.

(b) All gas tendered by Customer for transportation hereunder shall

conform to the quality provisions of the General Terms and

Conditions of Pipeline's FERC Gas Tariff, Third Revised Volume

No. 1.