Texas Gas Transmission, LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Second Revised Sheet No. 2603 Second Revised Sheet No. 2603

Superseding: First Revised Sheet No. 2603

GENERAL TERMS AND CONDITIONS

Section 14

(Cont'd)

(m) Imbalances accrued by Customer as a result of a force majeure event on Texas

Gas' system during a month, shall be resolved by Texas Gas and Customer pursuant

to the provisions of this Section; provided, however, that the price to be paid

by Texas Gas or Customer for Customer's net monthly imbalance accrued during the

month in which the force majeure event occurred shall be 100% of the monthly

average Index Price in effect for that month.

(n) Commencing with the effective date of this section, Texas Gas shall accumulate

any differences between the revenues received by Texas Gas and the costs

incurred by Texas Gas under the cash-out provisions of this section during each

subsequent twelve-month period (annual billing period).

(i) Following each Annual Billing Period, Texas Gas shall compare the cash-

out revenues for the period, including without limitation OBA cash-out

revenues, plus any carry forward amounts, including interest, ("Total

Cash-Out Revenues") with the cash-out costs for the period. If the Total

Cash-Out Revenues exceed the cash-out costs incurred, and such excess is

equal to or greater than $1,000,000, then Texas Gas shall file within 90

days of the end of the Annual Billing Period to establish a refund

applicable to both its Firm and Interruptible Rate Schedules to return

the net overrecoveries. Texas Gas shall refund to Customers within 30

days following such filing pro rata based upon throughput for NNS, NNL,

SGT, SGL, SNS, WNS, STF, FT and IT quantities for the Annual Billing

Period.

If the Total Cash-Out Revenues exceed the costs incurred by less than

$1,000,000, then Texas Gas shall carry forward the net balance to the

next Annual Billing Period. Interest will be calculated on the net

balance in the cash-out tracker in accordance with Section 154.501(d) of

the Commission's regulations. In the event of a refund, the interest

will be included in the amount refunded to Customers. In the event a

refund is not due, interest will be calculated on the net balance and

such balance, with interest, will carry forward to the subsequent Annual

Billing Period.

(o) System Management Purchase Authority: Texas Gas may, at its discretion, use

proceeds received from the cash-out of imbalances due Texas Gas under this

Section 17 to purchase quantities of gas at any time and from time to time, as

needed, for management of its pipeline system. Purchases shall be accounted for

at the actual cost of gas, except purchases from a Texas Gas marketing affiliate

shall be valued at the lower of the actual cost of gas or the 100% cash-out

monthly average index price as determined in Section 17.3(g) herein. Purchases

shall be documented and accounted for in the annual filings made under Section

17.3(n). Likewise, Texas Gas, at its discretion may dispose of any net excess

quantities of gas it has received, as a result of the cash-out of overdeliveries

to Texas Gas under this Section 17 at any time and from time to time, as needed,

for management of its pipeline system.