Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 08/01/1998, Docket: RP98-273-000, Status: Effective

Fourth Revised Sheet No. 173 Fourth Revised Sheet No. 173 : Superseded

Superseding: Third Revised Sheet No. 173

GENERAL TERMS AND CONDITIONS (Continued)

38. DISCOUNTING

Pipeline may elect at its discretion to discount the maximum rate(s)

applicable to transportation service for any Customer subject to

the limitation that such discounted rate(s) shall not be less than

the minimum rate(s) for the applicable service as set forth in

Pipeline's FERC Gas Tariff as may be changed from time to time.

Any rate discount provided to any Customer shall be applied to

the components of the rate in the following order: (1) GRI

surcharge; and (2) base tariff rate(s) for the applicable service

including retainage. If the discounted rate(s) charged to a

Customer exceed the rate(s) approved by the Commission, any

required refunds shall be based on the amount by which the rate

actually collected exceeds the rate approved by the Commission.