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. 19 Substitute Original Sheet No. 19 : Effective

Superseding: Original Sheet No. 19

GENERAL TERMS AND CONDITIONS (Cont,d)

12. PURCHASED GAS COST ADJUSTMENT (Cont'd)

as defined by Section 154.302(j) of the Commission's

regulations and any amounts recorded for that month

for nonconcurrent exchange transactions. The Actual Cost

of Purchased Gas shall be increased or decreased, as

appropriate, to adjust for exchange transactions and

transportation imbalances in accordance with Section

154.305(j) of the Commission's regulations.

(c) In addition to the costs computed under (a) and (b)

above, the current deferral subaccount balance may include

adjustments to a prior month's actual cost of gas purchased,

transfers from the refund subaccount, transfers of

unamortized balances after the related surcharge recovery

period has expired, and carrying charges.

12.8 Seller shall determine from its Unrecovered Purchased

Gas Costs Account for each deferral period the debit or

credit balance to be recovered or returned by Surcharge

Adjustments. The Surcharge Adjustment necessary to amortize

the balance shall be computed to the nearest 1/100 cent by

dividing the amount in the current deferral subaccount by

the forecast sales under the affected rates during the

succeeding surcharge recovery period. The resulting

Surcharge Adjustment will be in effect for the applicable

surcharge recovery period. For each twelve (12) month deferral

period the surcharge recovery period shall be the succeeding

twelve (12) calendar month period commencing on the effective

date of Seller's annual Purchased Gas Adjustment filing

(November 1).

12.9 Seller shall submit to the Commission an assessment of

past performance at the same time as it submits its annual

Purchased Gas Adjustment filing, or as otherwise required by

the Commission. The assessment shall be developed, and the

amount of gas costs which require specific Commission

approval for surcharge recovery shall be determined, in

accordance with Section 154.306 of the Commission's

regulations.