Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 3600 Original Sheet No. 3600 GENERAL TERMS AND CONDITIONS Section 2424. Order No. 528 Settlement Payment Cost Recovery Mechanism 24.1 Purpose. This Section of the General Terms and Conditions sets forth the procedures to reflect charges associated with the recovery of Transporter's Order No. 528 (Order No. 528) Settlement Payments. 24.2 Definitions. The definition of terms applicable to this Section are as follows: (a) Commodity Order No. 528 Surcharge Recovery Period - The one (1) year period beginning on July 1, 1999, and ending on June 30, 2000. (b) Order No. 528 Settlement Payments - Any costs incurred by the Company directly or indirectly to extinguish outstanding take-or-pay exposure under pre-Order No. 636 gas purchase contracts or to terminate the contracts or to reform the price, volume or other pertinent economic terms of the contracts with producer suppliers. (c) Order No. 528 Commodity Surcharge - A commodity surcharge reflected on Sheet Nos. 20, 21, 25, 26, 29 and 30 which is based on 75% of Order No. 528 Settlement Payments, including interest on such amounts. (d) Interest Rate - The quarterly interest rate published by the Federal Energy Regulatory Commission and computed in accordance with Section 154.501 of its regulations. 24.3 Determination of the Commodity Order No. 528 Surcharge. Texas Gas shall determine the Commodity Order No. 528 Surcharges to be applicable for the Annual Commodity Order No. 528 Surcharge Recovery Period of July 1, 1999, through June 30, 2000, by the following procedure: (a) The Commodity Order No. 528 Charge for the Commodity Order No. 528 Surcharge Recovery Period shall be based on seventy-five percent (75%) of the total Order No. 528 Settlement Payments, including applicable interest. Pipeline shall then calculate an annual interest amount using the then effective Commission prescribed interest rate on the unamortized commodity Order No. 528 balance for each month of the Commodity Order No. 528 Surcharge Recovery Period. The sum of the annual commodity Order No. 528 amount and the interest amount shall be divided by throughput based upon the most recent 12 months of actual available data to determine the Commodity Order No. 528 Surcharge which is set forth on Sheet Nos. 20, 21, 25, 26, 29 and 30 of this tariff. (b) If, prior to June 30, 2000, the end of the recovery period, Texas Gas has recovered the maximum amount permitted, then Texas Gas may file to terminate its Order No. 528 surcharges.