Southwest Gas Storage Company

First Revised Volume No. 1

Effective Date: 12/15/1999, Docket: RP00- 58-002, Status: Effective

Sub Original Sheet No. 140 Sub Original Sheet No. 140 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

12.STATEMENTS AND PAYMENTS (Continued)

the date of the initial transportation invoice and 7 months

from date of initial sales invoice with a 3-month rebuttal

period, excluding government-required rate changes.

The above shall not apply in the case of deliberate omission

or misrepresentation or mutual mistake of fact. Parties'

other statutory or contractual rights shall not otherwise be

diminished by these standards.

12.4 Shipper agrees to reimburse Southwest for all filing or other

fees, in connection with storage service provided under any Rate

Schedule in this Tariff, that Southwest is obligated to pay to the

Commission or to any other governmental authority having

jurisdiction. The term "fees" as used herein, shall mean any fee

or charge now or hereafter levied, assessed or made by any

governmental authority on the gas itself or on the act, right or

privilege of handling, storing, delivering or redelivering gas,

however such fees or charges are measured.

12.5 In addition to all other rates and charges applicable to the

service provided to Shipper, Shipper shall reimburse Southwest or

cause Southwest to be reimbursed for any and all costs and

expenses incurred in constructing, establishing or modifying the

facilities required for receipt and delivery of Gas hereunder,

unless otherwise agreed to in advance and in writing; provided,

however, that Southwest may agree at its sole discretion to

construct, modify, expand or acquire facilities to enable it to

perform such services. The construction of new facilities must

not create any significant operational problems for Southwest nor

adversely alter the operation of the storage facilities or affect

the rendition of existing service.

12.6 Order of Discounting

If and when Southwest discounts the rates applicable for service

under any Storage Service Agreement under Rate Schedules included

in Southwest's FERC Gas Tariff, the components of the currently

applicable Maximum Rate shall be discounted in the following

order: the first item discounted shall be the base rate followed

by the surcharges established by the General Terms and Conditions.