Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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

Original Sheet No. 61A Original Sheet No. 61A : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

34. RECOVERY OF NATURAL GAS POLICY ACT PRICES

Former Rate Schedules PLS-1 and GSS-1 customers will still be

subject to the provisions of Volume 3 of Pipeline's FERC Gas Tariff,

which sets forth the various settlement agreements with the Rate

Schedules PLS-1 and GSS-1 customers identified therein arising out of

Public Service Commission of New York v FERC, 463 U.S.319 (1983) and

Kentucky West Virginia Gas Co. v FERC, 780 F.2d 1231 (5th Cir. 1986).

35. DETERMINATION OF DELIVERIES AND IMBALANCES

35.1 Determination of Deliveries. Pipeline will attempt to determine

the actual imbalance ascribable to each service agreement to the

greatest extent possible. If gas delivered by Pipeline into the

facilities of any customer is applicable to more than one service

agreement and Pipeline cannot ascribe the actual imbalance to each

individual service agreement, Pipeline will attribute the total

volumes of gas delivered to any customer to each service in the

following sequence as applicable:

(i) the volume of gas scheduled for delivery by the customer

under the customer's no-notice service agreement;

(ii) the volume of gas scheduled for delivery by the customer

under the customer's other firm service agreements;

(iii) the volume of gas scheduled for delivery under the

customer's interruptible service agreements.

35.2 Customer's Responsibility. It is the responsibility of the

customer to provide accurate and timely nominations of quantities

proposed to be received and delivered by Pipeline under each of

the customer's service agreements; to maintain equality between

quantities actually taken by the customer and the customer's

scheduled quantities under each service agreement, and to maintain

a concurrent balance between receipts and deliveries under each

service agreement.

35.3 Resolution of Imbalances. If a customer incurs either an overage

or an underage in takes from Pipeline due to a failure to deliver

to Pipeline or receive from Pipeline the quantity of gas which it

is required to receive or deliver, penalties may be applied as

described in this section. If a customer has more than one

service agreement with Pipeline and it is not otherwise

determinable under which service agreement the imbalance occurred,

all imbalances will be applied to the service agreement which is

last in the determination of deliveries under Section 35.1.