Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 01/01/1999, Docket: RP99-149-000, Status: Effective

Original Sheet No. 162B Original Sheet No. 162B : Superseded

GENERAL TERMS AND CONDITIONS (CONTINUED)

28.6 Effect of Discounting.

With regard to transportation services which are discounted by

Kentucky West, the GRI surcharge will be considered as being

discounted first, before other items included in the maximum rate

levels are impacted. If the discount is greater than or equal to

the GRI surcharge, Kentucky West will have no obligation to remit

any surcharge to GRI for that transaction. The GRI surcharge may

be discounted to a minimum surcharge of zero.