*Transcontinental Gas Pipe Line Company, LLC*

*Fourth Revised Volume No. 1*

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

**Original Sheet No. 447 **Original Sheet No. 447

GENERAL TERMS AND CONDITIONS

(Continued)

40. DISCOUNT POLICY

40.1 Types of Rate Discounts

Seller may agree to discount its rate to Buyer below Seller's maximum rate, but not

less than Seller's minimum rate. Such discounted rate may apply to:

(a) specified quantities (contract demand or commodity quantities);

(b) specified quantities above or below a certain level or all quantities if

quantities exceed a certain level;

(c) quantities during specified time periods;

(d) quantities at specified points, zones, or other defined geographical areas.

Such discounted rate, inclusive of all reservation and commodity components and

applicable surcharges (total discount rate), may be subject to the condition that if

Seller's maximum rate, inclusive of all reservation and commodity components and

applicable surcharges (total maximum rate), is subsequently reduced by Commission

order or rule or by settlement or otherwise, and Seller is required to make a refund

to Buyer for charges paid for such transportation, then such refund will be provided

to Buyer only if and to the extent that the total maximum rate determined pursuant to

such order, rule, settlement or otherwise is less than the total discount rate. Such

refund, if any, shall be calculated by subtracting the applicable total maximum rate

from the corresponding total discount rate.