Texas Gas Pipe Line Corporation

Third Revised Volume No. 1

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Effective Date: 06/01/1990, Docket: RP90-112-000, Status: Effective

Original Sheet No. 21 Original Sheet No. 21 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

12. PURCHASED GAS COST ADJUSTMENT (Cont'd)

multiply the carrying charge rate specified in Section

154.305(h)(4) of the Commission's regulations by the

appropriate carrying charge base specified in Section

154.305(h)(3) of said regulations. The carrying charges so

computed shall be compounded on a calendar quarter basis as

specified in Section 154.67(c)(2)(iii)(B) of the

Commission's regulations. Seller shall monthly debit

carrying charges to Account No. 191 if the appropriate

carrying charge base is a debit (positive), or credit

carrying charges to Account No. 191 if the appropriate

carrying charge base is a credit (negative).

12.15 Seller may at any time from time to time, at its sole

discretion, file interim rate adjustments to its Base Tariff

Rates, in addition to its annual and quarterly Purchased Gas

Adjustment filings. An interim rate adjustment filed by

Seller shall be limited to those changes to the cost of gas

established in Seller's last scheduled Purchase Gas

Adjustment filing that Seller has a reasonable basis for

assuming will actually occur. An interim rate adjustment

may be either an increase or a decrease from its current

average cost of gas purchased; provided, however, any

interim rate adjustment filed by Seller shall be based on a

projected average cost of purchased gas that is less than

the projected average cost of purchased gas reflected in

Seller's last scheduled Purchased Gas Adjustment filing.

12.16 Seller shall file an interim rate adjustment with the

Commission and post same at least 24 hours before the

effective date of the proposed interim rate adjustment.

Seller shall, at the same time it files an interim rate

adjustment with the Commission, serve its jurisdictional

customers and interested state commissions with a copy of

the filing. In making its interim rate adjustment filing

Seller shall file tariff sheets that conform to the format

set forth in Sections 154.33(d) and 154.309(c) of the

Commission's regulations and a summary sheet showing the

changes in purchased gas cost reflected in the interim

adjustment.

12.17 The effectiveness and implementation of this Section 12

shall be subject to and in accordance with the provisions of

Sections 154.301 through 154.310 of the Commission's

regulations.