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. 17 Substitute Original Sheet No. 17 : Effective

Superseding: Original Sheet No. 17

GENERAL TERMS AND CONDITIONS (Cont,d)

12. PURCHASED GAS COST ADJUSTMENTS (Cont'd)

12.3 Current Adjustments, as derived pursuant to Section 12.4

hereof, shall be placed in effect as of June 1, 1990, and

thereafter as of the effective date of Seller's next annual

or quarterly Purchased Gas Adjustment filing with

the Federal Energy Regulatory Commission (Commission) as the

case may be, subject to Seller's right to make interim

adjustment rate changes as set forth in Section 12.15

hereof; provided, however, that no Current Adjustment

shall be made effective unless the absolute value of such

Current Adjustment equals or exceeds one mill per Mcf.

Seller shall file an annual Purchased Gas Adjustment filing

with the Commission effective as of November 1 of each

year (Annual Effective Date) and shall file three quarterly

Purchased Gas Adjustment filings with the Commission

effective as of February 1, May 1, and August 1 of each year

(Quarterly Effective Dates).

12.4 The Current Adjustment for each three (3) month period

commencing with each annual or quarterly effective date

shall be derived by the seller in the following manner:

(a) The Projected Total Cost of Purchased Gas to be

supplied in Seller's System for such period shall be

the sum of the projected purchased gas costs for such

period determined with respect to each supplier

in accordance with Section 154.305(c)(1) of the

Commission's regulations including nonconcurrent

exchange transactions priced pursuant to

Section 154.305(j).

(b) The Weighted Average Projected Purchased Gas Costs

(WAPPGC) for a period shall be determined by dividing

the Projected Total Cost of Purchased Gas determined

in (a) above by the total volume of gas Seller expects

to sell during the period.

(c) Seller shall only project its purchased gas costs for

purposes of (a) and (b) above based on gas supply

attached to Seller's System as of the date the Current

Adjustment becomes effective.

(d) The Current Adjustment applicable to such period is

equal to the difference between the current WAPPGC and

the WAPPGC reflected in the effective period of

Seller's last scheduled Purchase Gas Adjustment filing.