Phillips Gas Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 79 Original Sheet No. 79 : Effective

ARTICLE 3 - RATES AND CHARGES

3.1 For the services provided or contracted for hereunder, Shipper agrees

to pay PGPL the then-effective, applicable rates and charges under

PGPL's Rate Schedule IT-1 filed with the Commission, as such rates

and charges and Rate Schedule IT-1 may hereafter be modified,

supplemented, superseded, or replaced generally or as to the service

hereunder. PGPL reserves the unilateral right from time to time to

file and to make effective any such changes in the terms or rate levels

under Rate Schedule IT-1 and the applicability thereof, the General

Terms and Conditions for Transportation Service or any other

provisions of PGPL's Tariff, subject to the applicable provisions of the

Natural Gas Act and the Commission's Regulations thereunder.

3.2 From time to time PGPL and Shipper may agree in writing, on a level

of discount of the otherwise applicable rates and charges hereunder,

pursuant to the effective applicable provisions of Rate Schedule IT-1

and subject to the Regulations and Orders of the Commission. Any

discount(s) shall be effective only on a prospective basis and as

specified in the written agreement between PGPL and Shipper.

3.3 Notwithstanding the provisions of Sections 3.1 and 3.2 above, for the

services provided or contracted for hereunder, PGPL and Shipper may

agree on a level of discount of the otherwise applicable rates and

charges pursuant to the effective applicable provisions of Rate

Schedule IT-1 and subject to the Regulations and Orders of the

Commission. Shipper agrees to pay in addition to any discounted rates

established hereunder all applicable charges under PGPL's IT-1 tariff

other than those base rates established under paragraphs 3.1 and 3.2

of the tariff or their successors.

ARTICLE 4 - GENERAL TERMS AND CONDITIONS

4.1 This Agreement and all terms for service hereunder are subject to the

further provisions of PGPL's Rate Schedule IT-1 and of the General