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. 438 Original Sheet No. 438

GENERAL TERMS AND CONDITIONS

(Continued)

37. CASH OUT PROVISIONS (Continued)

37.1 (c) (v) Imbalance quantities which are greater than a 15% imbalance but less

than or equal to a 20% imbalance shall be multiplied by the applicable

"Sell" price which shall be the highest weekly Reference Spot Price

multiplied by a factor of 140%; then

(vi) Imbalance quantities which are greater than a 20% imbalance shall be

multiplied by the applicable "Sell" price which shall be the highest

weekly Reference Spot Price multiplied by a factor of 150%.

(d) At the end of the trading period, if a Buyer's imbalance in a zone within an

OIA is "Due From" Buyer and the aggregate imbalance for all Buyers in that zone

within an OIA is "Due To" Buyer, such Buyer shall be defined as a minority

shipper for that zone within an OIA. A minority shipper shall cash out the

imbalance for that zone within an OIA based on tiers beginning with (i) below

and progressing through each subsequent tier until the entire imbalance has

been cashed out. Each tiered imbalance quantity shall be calculated by

multiplying the percentage imbalance, as stated in (i) through (v) below, times

Buyer's total deliveries. Any imbalance in that zone within an OIA that is

equal to or less than 1,000 dt shall be cashed out using the provisions set

forth in (i) below.

(i) Imbalance quantities which are equal to or less than a 5% imbalance

shall be multiplied by the applicable "Sell" price which shall be the

average of the weekly Reference Spot Prices for that zone pursuant to

Section 37.1(a)(i) of the General Terms and Conditions; then

(ii) Imbalance quantities which are greater than a 5% imbalance but less than

or equal to a 10% imbalance shall be multiplied by the applicable "Sell"

price which shall be the highest weekly Reference Spot Price for that

zone multiplied by a factor of 120%; then

(iii) Imbalance quantities which are greater than a 10% imbalance but less

than or equal to a 15% imbalance shall be multiplied by the applicable

"Sell" price which shall be the highest weekly Reference Spot Price for

that zone multiplied by a factor of 130%; then

(iv) Imbalance quantities which are greater than a 15% imbalance but less

than or equal to a 20% imbalance shall be multiplied by the applicable

"Sell" price which shall be the highest weekly Reference Spot Price for

that zone multiplied by a factor of 140%; then

(v) Imbalance quantities which are greater than a 20% imbalance shall be

multiplied by the applicable "Sell" price which shall be the highest

weekly Reference Spot Price for that zone multiplied by a factor of

150%.