Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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

Third Revised Sheet No. 172 Third Revised Sheet No. 172 : Superseded

Superseding: Second Revised Sheet No. 172

GENERAL TERMS AND CONDITIONS (Continued)

Any Customer liable for the payment of an exit fee under this

Section 36 may elect to pay the exit fee amortized over a period

of up to twenty four months by making monthly payments, each of

which shall be equal to a corresponding fraction of the amount

of the exit fee. Carrying charges shall accrue on all unpaid

amounts at the rate computed using the factors specified in

Section 157.67 of the Commission's regulations. Any Customer

electing to amortize payments must make such election within five

days of receipt of the invoice and must specify the desired

amortization period. In the event of an election to amortize the

exit fee, any Customer may, at any time prior to the end of the

amortization period, pay the entire amount of its unpaid

balance to Pipeline with no further obligation for carrying

charges.

37. INTERRUPTIBLE REVENUE SHARING

The fixed cost components of the rates set forth on Rate Schedule ITS in

the Currently Effective Rates, Sheet Nos. 4 and 5 are:

Transportation - $0.2222/dth

Gathering - $0.3759/dth

The total fixed costs allocated to such interruptible services in the

design of such rates is $7,353,880. To the extent that Pipeline

receives revenues derived from the fixed cost components of such rates

in excess of $7,353,880, during the first year of operation under such

schedules, and each succeeding year, ninety percent (90%) of such excess

revenues shall be distributed to Pipeline's firm Customers in direct

proportion to payments received from such firm Customers through

reservation charges under Rate Schedule FTS for said first year of

operation and each succeeding year. The remaining 10% of such excess

shall be retained by Pipeline together with all other interruptible

revenues.

The distribution of the 90% of the excess revenue shall be made on or

before 90 days after the end of the year involved.