Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 07/01/1993, Docket: RS92- 18-002, Status: Effective

Original Sheet No. 38F Original Sheet No. 38F : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

entitlements in the future. In such event, Pipeline shall not be

liable for any losses or for either actual or consequential

damages arising out of its failure to have sufficient gas supplies

for delivery to Customers, and Pipeline's implementation of the

curtailment procedures set forth in this Section 14 shall

constitute full compliance with its delivery obligations under

this Tariff, except to the extent its failure to have sufficient

gas supplies is shown to be the result of its own negligence or

misfeasance.

14.8 Decrease in Reservation Charge for Failure to Make Full Delivery

If Pipeline, during any curtailment period, fails or is unable to

deliver to Customer during any one or more days the quantity of

natural gas which Customer is entitled to take and would in good

faith have purchased, up to the maximum quantity of natural gas

which Pipeline is obligated by the gas sales contract to deliver

to Customer, then the reservation charge as otherwise computed

under any rate schedule containing a reservation charge in this

Tariff shall be reduced by an amount equal to the applicable daily

reservation charge per dth times the difference between the

quantity of natural gas actually delivered during said day or

days and the quantity of natural gas scheduled by Customer for

delivery during said day or days.

14.9 Unauthorized Overrun Penalty

If, during any curtailment period whether due to capacity or gas

supply limitations any Customer takes, without Pipeline's advance

approval, a quantity of natural gas in excess of the maximum

amount to which it is entitled pursuant to this Section, said

quantity shall constitute unauthorized overrun quantity. For each

dth of such unauthorized overrun quantity taken by such Customer,

such Customer shall pay to Pipeline a penalty of ten dollars

($10.00) together with and in addition to the reservation,

commodity, gas penalty charges and other charges otherwise payable

by such Customer for the period in which said unauthorized

overrun quantity was taken; provided, however, if, due to

mechanical failure or inadvertent human error, any customer, while

exercising reasonable prudence, takes overrun gas, then such

Customer may request Pipeline to grant relief if, during the

period the overrun payment was incurred, deliveries to Pipeline's

other customers were not unduly adversely affected thereby and/or

Pipeline's operations were not materially impaired thereby.

Neither the payment of a penalty for unauthorized overrun, nor the