Texas Gas Pipe Line Corporation

Third Revised Volume No. 1

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Effective Date: 06/01/1990, Docket: RP90-112-001, Status: Effective

Substitute Original Sheet No. 16 Substitute Original Sheet No. 16 : Effective

Superseding: Original Sheet No. 16

GENERAL TERMS AND CONDITIONS (Cont'd)

10. ARBITRATION (Cont'd)

notice shall name the second. The two arbitrators so appointed

shall name the third, or failing to do so, the third arbitrator may

be appointed by the senior judge (in service) of the United States

District Court for the District in which the sale is made.

The arbitrators selected to act hereunder shall be qualified

by education and experience to pass on the particular question in

dispute. If an engineering question is involved, qualified

engineers shall be appointed and similar procedures shall be followed

in connection with other questions. The arbitrators so appointed

shall promptly hear and determine (after due notice of hearing and

giving the parties a reasonable opportunity to be heard) the

questions submitted, and shall render their decision within 60 days

after appointment of the third arbitrator. If within said

period a decision is not rendered by the board, or majority thereof,

new arbitrators may be named and shall act hereunder at the election

of either Buyer or Seller in like manner as if none had been

previously named.

The decision of the arbitrators, or the majority thereof,

made in writing, shall be final and binding upon Seller and Buyer as

to the questions submitted and Buyer and Seller shall abide by and

comply with such decision. The expenses of arbitration, including

reasonable compensation to the arbitrators, shall be borne equally

by Seller and Buyer, except that each party shall bear the

compensation and expenses of its own counsel, witnesses and

employees.

11. SERVICE AGREEMENT

Buyer and Seller shall execute a service agreement in the

form contained in this tariff.

12. PURCHASED GAS COST ADJUSTMENTS

12.1 For the purpose of establishing a continuing basis upon

which changes in the purchase cost of gas resold under

Seller's rate schedules can be reflected in Seller's

rates, the rates set forth under the heading "Base Tariff

Rate" on Sheet No. 4 of this tariff, as changed from

time to time pursuant to the provisions of the Natural Gas

Act, shall constitute the Base Tariff Rates.

Section 12.2 through Section 12.17 hereof set forth the

terms and conditions under which Seller may increase and

shall decrease its rates for its jurisdictional sales of gas

on and after June 1, 1990, to reflect changes in Seller's

cost of purchased gas. Seller shall use the unit of sales

method to reflect changes in Seller's cost of purchased gas

12.2 The Base Tariff Rates shown on Sheet No. 4 of this tariff

shall be subject to adjustment to reflect changes in

Seller's cost of gas purchased from its suppliers, which

adjustments shall be designated Current Adjustments.