Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 07/01/2010, Docket: RP10-763-000, Status: Effective

Second Revised Sheet No. 444 Second Revised Sheet No. 444

Superseding: First Revised Sheet No. 444

GENERAL TERMS AND CONDITIONS

(Continued)

38. FUEL RETENTION ADJUSTMENT PROVISION

38.1 General

This section of the General Terms and Conditions sets forth the procedures to reflect

changes in Seller's fuel retention percentages (FRP's) applicable to Seller's Volume

No. 1 and Volume No. 2 transportation and storage services under which Seller retains

fuel.

38.2 Conditions

(a) The FRP's set forth in Seller's Volume No. 1 Tariff may be increased to reflect

a net positive change in FRP's and shall be decreased to reflect a net negative

change in FRP's.

(b) Seller shall file with the Federal Energy Regulatory Commission to reflect net

changes in FRP's for services other than the services provided under Rate

Schedules LG-A, LNG and LG-S at least 30 days prior to each April 1 which is the

beginning date for the Annual Period.

(c) Seller shall file with the Federal Energy Regulatory Commission to reflect net

changes in FRP's for services provided under Rate Schedules LG-A, LNG and LG-S

at least 30 days prior to each November 1 which is the beginning date for the

LNG Annual Period.

38.3 Definitions

(a) Annual Period - The annual period beginning each April 1.

(b) LNG Annual Period - The annual period beginning each November 1.

(c) Actual Gas Required for Operations (GRO) - Actual gas used in Seller's

operations, including all gas otherwise used, lost or unaccounted for, and

Unauthorized Receipts retained by Seller pursuant to Section 56 of these General

Terms and Conditions. Actual gas used shall include prior period adjustments,

positive or negative, in accordance with Section 38.7 below.

(d) Estimated GRO - Actual GRO quantities for the latest twelve month period for

services other than the services provided under Rate Schedules LG-A, LNG and

LG-S and the actual GRO quantities for the latest 36 month period for Rate

Schedules LG-A, LNG and LG-S adjusted, where necessary, for known variations

from actual experience.

(e) Estimated Volumes - Actual annual volume determinants attributable to services

to which Seller allocates or assigns GRO quantities for the latest twelve month

period for services other than the services provided under Rate Schedules LG-A,

LNG and LG-S and for the latest 36 month period for Rate Schedules LG-A, LNG and

LG-S adjusted, where necessary, for known variations from actual experience.

(f) Deferral Period - The period of 12 months ending 2 months prior to the effective

date of a change in rates filed pursuant to this Section 38.

38.4 Determination of the Current FRP's

Seller shall determine the Current FRP's for each Annual Period and each LNG Annual

Period by the following procedures:

(a) The Estimated GRO quantities shall be summed with the balance accumulated at the

end of the Deferral Period in the Deferred GRO Account as determined in

accordance with Section 38.5(d). Such resulting quantity shall be allocated to

or assigned among services in accordance with the allocation methods and

principles in effect on Seller's system.

(b) The quantities determined in Section 38.4(a) above will be divided by the

Estimated Volume determinants, as appropriate.