Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 07/01/1993, Docket: RS92- 18-004, Status: Effective

Original Sheet No. 39 Original Sheet No. 39 : Superseded

RATE SCHEDULE MDS

Marketing Division Sales Service

1. AVAILABILITY

This Rate Schedule is available to any party (hereinafter called

"Customer") for the purchase of gas on an unbundled basis from Kentucky

West Virginia Gas Company (hereinafter called "Pipeline") under the

following conditions:

a. Pipeline possesses adequate supplies of gas to render the proposed

sales service; and

b. Customer has entered into a sales service agreement with Pipeline

wherein the Customer agrees to purchase a quantity of gas under terms

and conditions negotiated between Pipeline and Customer.

2. APPLICABILITY AND CHARACTER OF SERVICE

2.1 The applicability and character of this service including rates,

term, and conditions of service, shall be subject to negotiation

between Pipeline and any prospective Customer.

2.2 Sales under this Rate Schedule shall be made at the wellhead, or at

a pooling point or receipt point upstream of the mainline system.

Customer shall be solely responsible for obtaining any necessary

gathering or transportation from the point(s) of sale.

2.3 Sales under this Rate Schedule shall be made on a firm or

interruptible basis as negotiated bewteen Pipeline and Customer.

2.4 Sales under this Rate Schedule shall be provided under the blanket

certificate authority issued to Pipeline pursuant to 18 C.F.R.

Section 284.284(a). When a sales service agreement between Pipeline

and Customer expires, Pipeline is authorized to abandon such sales

service without additional abandonment authorization from the FERC.

3. RATE

3.1 The rate for service under this Rate Schedule shall be negotiated

between Pipeline and Customer, and shall be based on prevailing

market-clearing prices.