Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 11/01/1997, Docket: RP97-104-005, Status: Effective

First Revised Sheet No. 136 First Revised Sheet No. 136 : Superseded

Superseding: Original Sheet No. 136

GENERAL TERMS AND CONDITIONS (Continued)

(2) Pipeline may direct Customers under Rate Schedules

FTS, VTS or ITS to decrease deliveries in the event

that delivery pressure at one or more delivery points

drops below, or is expected to drop below, reasonable

operating limits.

If an OFO is issued for any reason other than those described

in the preceding paragraphs (a), (b), and (c), Pipeline will

post on its electronic communications system, via EDI and

send to the Commission a detailed explanation containing all

relevant information specific to that individual situation.

16.6 Compliance

Compliance with OFOs issued by Pipeline is essential to

Pipeline's ability to provide services under all of its rate

schedules. If any Customer fails to comply with an OFO on the

day and time of its effectiveness, Pipeline will notify the

Customer of such noncompliance as soon thereafter as

practicable, and the Customer will have one hour, or such lesser

time as is appropriate under the circumstances, to comply with

the OFO. Customer may use an agent, which may be Pipeline, to

ensure compliance with any OFO. If Customer and/or Customer's

supplier, agent, operator or transporter fail to comply with

the terms of an OFO, such Customer shall be liable for any

damages including, but not limited to, direct, consequential,

exemplary or punitive damages incurred by Pipeline or any other

party as a result of such failure.

16.7 Reimbursement

If Pipeline is required to divert gas pursuant to an OFO which

would otherwise have been delivered to a Customer, Pipeline

shall pay the recipient of the OFO for such quantity of gas at a

price per dekatherm equal to the spot market index price for

Appalachian production delivered to Columbia Gas Transmission

Corporation in Kentucky as published in Inside FERC's Gas Market

Report for the month in which such diversion occurred.