Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-03-000, Status: Suspended

First Revised Sheet No. 2101 First Revised Sheet No. 2101

Superseding: Original Sheet No. 2101

GENERAL TERMS AND CONDITIONS

Section 9

(Cont'd)

The default EFRP for Rate Schedules NNS, NNL, SGT, and SGL shall be the

Annual Option and that election shall remain effective for subsequent

annual periods; the default EFRP for Rate Schedules SNS and STF shall be

the Seasonal Option and that election shall remain effective for

subsequent annual periods. To elect the non-default option for the next

annual period, Customer must provide written notice to Texas Gas of such

election for each contract prior to August 1, of the year preceding the

affected annual period; provided, however, for the annual period beginning

November 1, 2008, Customer may provide notice until September 30, 2008 to

elect the non-default option. If Customer has elected the non-default

option, Customer may elect to return to the default option commencing with

the next annual period by providing written notice to Texas Gas of such

election prior to August 1 of the year preceding the affected annual

period. New NNS, NNL, SGL, SGT, SNS, and STF service agreements will

automatically incorporate the default option. The Customer may elect the

non-default option for subsequent annual periods by following the

procedures outlined above. Any Customer which has released capacity for a

term which extends into the next annual period shall not make a fuel

election change and will continue their existing fuel election for the

subsequent annual period.

EFRPs for storage service under Rate Schedules FSS and ISS shall be

established on an annual basis for net daily injection and withdrawal

quantities.

9.2.4 Projected Fuel Retention Percentages

With each filing hereunder, for each service category, Texas Gas shall

calculate a PFRP by projecting the annual or seasonal, as applicable, fuel

zone distribution and storage utilization, based on historic throughput,

fuel use and loss. The Lost and Unaccounted For component of the PFRP

volumes is determined for the system as a whole and allocated to each fuel

zone based on compressor fuel use.

A PFRP for service under Rate Schedules NNS, NNL, SGT, SGL, SNS, FT, STF,

or IT, will be determined on an annual basis for each service category,

except for those NNS, NNL, SGT, SGL, SNS, and STF Customers utilizing the

Seasonal Option (whether by default or by election), in which case the

PFRP will be determined on a seasonal basis. A PFRP for service under

Rate Schedules FSS and ISS will be determined on an annual basis, based on

both injection and withdrawal quantities.

Projections used to calculate the PFRPs shall be the average of the last

two years' actual throughput volumes and actual fuel used and the average

of the last four years' actual "Lost and Unaccounted For" volumes.

"Lost and Unaccounted For" volumes are the negative or positive difference

between total receipts (including receipts from transportation and storage

customers) and total deliveries (including deliveries to transportation

and storage customers and the total gas used for compressor fuel, system

use, and any other operational needs where the gas is actually measured or

accounted for).

Any variations from these procedures in a future filing made pursuant to

this Section 9.2 shall be fully identified and supported by Texas Gas in

accordance with its burden or proof under NGA Section 4 and such

variations shall reflect only known and measurable changes or trends on

the Texas Gas system. Notwithstanding this provision, Texas Gas retains

its right under Section 4 of the NGA to propose modifications to, or

elimination of, the fuel tracker provisions set forth in this Section 9.2.