Phillips Gas Pipeline Company

First Revised Volume No. 1

Effective Date: 06/01/1993, Docket: RS92- 47-003, Status: Effective

Original Sheet No. 15 Original Sheet No. 15 : Effective

3. RATES AND CHARGES

The rates and charges for service under this Rate Schedule shall

include on a monthly basis, as applicable to the particular service,

each of the effective rates, fees and charges, as set forth in this

Section 3 and as may hereafter be modified, superseded, or

replaced.

3.1 Reservation Charge

PGPL's firm transportation reservation charge is designed

under the straight fixed-variable method of rate design.

Each firm transportation customer's reservation charge will

be the sum of the annual total of the customer's firm

quantity entitlements multiplied by the fraction of the

number of days in the month divided by the number of days

in the year times the applicable rate set forth on the

currently effective Tariff Sheet No. 6 of this Volume. The

annual total of the customer's firm quantity entitlements

shall be as stated in the firm transportation agreement, and

in the absence of a separately stated annual quantity, will be

determined by multiplying the Firm Transportation Quantity

times the number of days in the year.

Shipper shall be liable for the reservation charge for each month in

which service under this rate schedule is contracted. Reservation

charges are subject to pro rata reductions for the first and last

months to reflect any days of that month on which service was not

contracted to be available. The reservation charge for any month

will be reduced appropriately, to the extent that curtailment or

interruption by PGPL causes a reduction in the service then being

performed for shipper. Should such curtailment or interruption

result in a cessation of service for any length of time, Shipper shall

not be required to pay a reservation charge for the period of such

cessation of service.