Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective

Original Sheet No. 355 Original Sheet No. 355

GENERAL TERMS AND CONDITIONS

(Continued)

15. REFUND OF CASH-OUT REVENUES IN EXCESS OF COSTS

(a) This section of the General Terms and Conditions sets forth the procedures under which

Seller will refund or carry forward, for each annual billing period, any difference

between the revenues received by Seller and the costs incurred by Seller under the

cash-out provisions of Seller's FERC Gas Tariff, including OBAs. For purposes of this

Section 15, an annual billing period shall be the twelve month period commencing each

August 1 and ending the following July 31 with the first such annual billing period

commencing August 1, 1991 and ending July 31, 1992.

(b) Subsequent to the end of each annual billing period Seller shall compare the revenues

received by Seller under the cash-out procedures with the costs incurred by Seller

under such cash-out procedures. If the revenues received exceed the costs incurred,

then Seller shall refund, within 60 days of the end of the annual billing period, the

net overrecoveries to firm and interruptible transportation customers (including

customers under Seller's bundled storage rate schedules) and OBA parties on a pro rata

basis in accordance with the transportation volumes Seller has delivered for firm and

interruptible transportation shippers (including transportation volumes bundled with

storage) and the measured quantities at locations where an OBA agreement is in effect

during the annual billing period. If the revenues received are less than the costs

incurred, then Seller shall carry forward the net underrecoveries to the subsequent

annual billing period and may offset such net underrecoveries against any future net

overrecoveries that may occur in a subsequent annual billing period.