Texas Gas Transmission, LLC

Third Revised Volume No. 1

Effective Date: 03/04/2010, Docket: RP10-360-000, Status: Effective

Second Revised Sheet No. 2101 Second Revised Sheet No. 2101

Superseding: Substitute First Revised Sheet No. 2101

GENERAL TERMS AND CONDITIONS

Section 9

(Cont'd)

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 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, WNS, FT,

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

category. A PFRP for service under Rate Schedules FSS, FSS-M, ISS, and

ISS-M 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.