Western Gas Interstate Company

Third Revised Volume No. 1

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Effective Date: 06/01/1993, Docket: RS92- 53-003, Status: Effective

Revised Original Sheet No. 295 Revised Original Sheet No. 295 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

28.3 Allocation of Charges - The amount of charges direct billed

to Western shall be allocated to Western's Customers on the

same basis as used to allocate the charges to Western. In

the event that any such direct or fixed charges are

allocated to Western on a basis that is not applicable to

Western's Customers, Western shall allocate the charges on

the same basis that fixed costs were allocated to establish

Western's rates that are in effect at the time the charges

are incurred. Charges that are incurred as reservation or

commodity surcharges shall be passed through concurrently

to Western's Customers on the same basis.

28.4 Retroactive Charges and Carrying Costs - To the extent that

Western incurs charges from an upstream pipeline on a

retroactive basis, Western shall recover from each of its

Customers, each Customer's allocated share of such amount.

If for any reason Western is required to pay charges to an

upstream pipeline prior to recovery of such amounts from

Western's Customers, Western shall be entitled to recover

carrying charges calculated in accordance with Section

154.67(c)(2)(iii) of the Commission's Regulations.

28.5 Refunds and Adjustments - In the event that charges

incurred by Western from an upstream pipeline are collected

subject to refund, Western's collections from its Customers

will also be subject to refund. Any increase, decrease, or

other adjustment to the amount of charges from an upstream

pipeline will also be allocated to, and charged or

credited, as applicable, to Western's Customers.

28.6 Authorization for Limited Filings - Western, pursuant to

the provisions of this Section, is authorized to make

limited Section 4 rate change filings from time to time to

adjust its rates, surcharges or direct billings solely to

reflect the amount of FERC approved take-or-pay and

transition charges that Western incurs from an upstream

pipeline. However, nothing herein shall be construed to

limit the rights of Western's Customers to intervene in or

protest any such filings.