Midwestern Gas Transmission Company

SECOND REVISED VOLUME NO. 1

Effective Date: 07/01/1996, Docket: RP96-247-000, Status: Effective

Second Revised Sheet No. 41 Second Revised Sheet No. 41 : Effective

Superseding: First Revised Sheet No. 41

RATE SCHEDULE LMS-PA

Load Management Service - Receipt Points

(d) Operational Integrity - Nothing in this Section 6 shall limit

Transporter's right to take action as may be required to adjust

receipts of gas in order to alleviate conditions that threaten

the integrity of its system.

(e) Disposition of Charges -- At the conclusion of each annual

period, Transporter will determine the net cashout activity.

All imbalance charge revenues received by Transporter in

accordance with Section 6(b) that are in excess of Transporter's

costs, including, but not limited to, (1) payments made by

Transporter in accordance with Section 6(b), (2) Transporter's

gas costs and fuel and loss costs properly allocable to Receipt

Point Operators, and (3) administrative costs, will be credited

annually against the take-or-pay buyout and buydown costs

assessed on all Part 284 transportation customers via demand

surcharges pursuant to Article XXIII of Transporter's General

Terms and Conditions. Subsequent to Transporter's recovery of

all such take-or-pay costs, any excess charges will be credited

against the reservation charges of all firm shippers, pro rata

based on Transportation Quantities. To the extent that the

cashout activity in any annual period results in a negative

balance, such balance will be carried forward and applied to the

next annual determination of cashout activity. At the end of

each annual period, Transporter will file a report and refund

plan with the Commission. At that time all Balancing

Parties/Shippers will have the right to challenge the refund

calculations and allocation methodology.

7. General Terms and Conditions

All of the General Terms and Conditions of Transporter's FERC Gas

Tariff are part of this Rate Schedule. To the extent there is an

inconsistency between a term or condition in this Rate Schedule and

the General Terms and Conditions, the General Terms and Conditions

shall govern. To the extent there is an inconsistency between a term

or condition in this Rate Schedule and a Balancing Agreement, this

Rate Schedule shall govern.