Viking Gas Transmission Company

Original Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 52-001, Status: Effective

Original Sheet No. 64 Original Sheet No. 64 : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

(ii) for amounts accrued after the date of reduction or conversion, an amount

calculated at the end of the contract year by multiplying the total

unrecovered amount for that year by the ratio of (1) the amount of the reduced

or converted demand billing units multiplied by the percentage of the

remaining contract year, and (2) the total of Transporter's actual sales

billing units to Transporter's Other Purchasers during such contract year.

The percent of contract year is calculated by dividing the number of days from

each of Transporter's Other Purchasers' partial reduction or conversion until

the end of the contract year, by three hundred and sixty-five (365).

(c) an amount, calculated in accordance with the procedures in (a) and (b) above, of

any out-of-period costs booked following the reduction or conversion and relating

to the period prior to such partial reduction or conversion.

In the event the balance in the unrecovered Purchased Gas Cost Account is a credit

balance, Transporter shall refund a portion of such balance to each of

Transporter's Other Purchasers in accordance with the formula specified in this

Section 2(a), (b) and (c).

The issuance by Transporter of direct bills or refunds pursuant to this Section 2

is subject to Transporter's filing for a receipt of approval from FERC. Within

thirty (30) days after receipt of such approval, Transporter shall issue invoices

for direct-billed amounts or refunds for any credit balances. Within thirty (30)

days after the determination of the out-of-period adjustments, Transporter shall

issue adjusted direct bills or refunds as a result of any out-of-period

adjustments. This Section shall not be construed to affect Transporter's right to

recover from Transporter's Other Purchasers' such transition costs as it may incur

in connection with contracts with suppliers of natural gas or otherwise, such

rights being expressly reserved, subject to applicable Commission regulations and

orders.

Transporter shall first bill its Unrecovered Gas Cost Account to converting or

reducing Purchasers in accordance with the formula specified in this Section 2(a),

(b) and (c). Transporter shall then bill the remaining amount in its Unrecovered

Gas Cost Account to all of its Other Purchasers in accordance with the formula

specified in Section 1(a), (b) and (c).

3. An Other Purchaser may challenge the prudence of any amount that is direct billed by

Transporter pursuant to this Article XVII in the FERC proceeding in which Transporter

seeks approval of such direct billing; provided however, that such amounts will be

subject to challenge only to the extent they have not previously been subject to review

in a prior purchased gas adjustment proceeding.