Ozark Gas Transmission, L. L. C.

First Revised Volume No. 1

Effective Date: 11/01/2008, Docket: RP08-617-000, Status: Effective

Original Sheet No. 154 Original Sheet No. 154

GENERAL TERMS AND CONDITIONS (continued)

17.2 Transporter may waive from time to time, at its discretion,

all or a portion of the monetary reimbursement requirement set

forth in Section 17.1 if it determines that construction of the

facilities would be economic to Transporter, based on Shipper

assurance of transportation throughput through the proposed

facilities and other matters, as described below. All requests

for waiver shall be handled by Transporter in a manner which is

not unduly discriminatory. For purposes of determining whether a

project is economic, Transporter will evaluate projects on the

basis of various economic criteria, which may include, without

limitation, the estimated incremental Transportation throughput;

cost of the facilities: operating, maintenance, administrative and

general expenses attributable to the facilities; the system net

revenues (excluding FERC ACA charges) Transporter estimates will

be generated subsequent to such construction; and the availability

of capital funds on terms and conditions acceptable to

Transporter. In estimating the system net revenues to be

generated, Transporter will evaluate the existence of capacity

limitations of the existing facilities, the marketability of the

capacity, the location of the markets, the nature of the

Transportation service, and other factors which impact the

utilization of Transporter's system. Transporter will consider

throughput to be incremental if the quantities that will be

transported would not otherwise flow through Transporter's system.

17.3 If Shipper is required to pay all or a portion of the total

cost of new facilities, Shipper's payment of the cost of the new

facilities shall be calculated on the basis of the full cost of

the new facilities, the tax burden to Transporter or its owners

created by Shipper's payment of such costs to Transporter, as well

as the tax-on-tax effect generated by such payment. The allowance

for income tax reimbursement shall be computed by taking into

consideration three elements: (1) the current taxes on the

"contribution in aid of construction" ("CIAC"), less (2) the

present value (computed using a discount rate equal to

Transporter's overall rate of return) of future tax deductions for

depreciation that will be available from the constructed

facilities, plus (3) the tax-on-tax effect of the first two

elements, all of which should be computed through use of tax rates

that are in effect when the contributions are received, i.e., Tax

Reimbursement = (Tax Rate x(CIAC-Present Value of Tax

Depreciation)) x (1 + (Tax Rate/(1-Tax Rate))). The present value

of the tax benefit provided by the future depreciation of plant

shall be determined by Transporter.