West Texas Gas, Inc.

First Revised Volume No. 1

Effective Date: 05/01/1998, Docket: RP98- 25-005, Status: Effective

Substitute Third Revised Sheet No. 24 Substitute Third Revised Sheet No. 24 : Effective

Superseding: Second Revised Sheet No. 24

GENERAL TERMS AND CONDITIONS

(Continued)

20. Surcharge for Unrecovered Purchased Gas Costs

20.1 Upon the termination of Seller's Purchased Gas Adjustment

mechanism, Seller shall be permitted to recover the total

unrecovered amounts remaining in its Unrecovered Purchased Gas

Account, Account No. 191 of the Uniform System of Accounts. Each

Buyer served under one of Seller's sales rate schedules as of the

day prior to the effective date of this Section 20 shall be

responsible for a proportionate share of any unrecovered purchased

gas costs, calculated in accordance with Section 20.2. If the

balance of Seller's Unrecovered Purchased Gas Account shall be a

credit balance, Seller shall refund a proportionate share of such

balance to the Buyers affected hereunder.

20.2 Each Buyer's proportionate share of any positive or

negative balance of Seller's Unrecovered Purchased Gas Account

shall be equal to a fraction consisting of the volume of Seller's

sales to Buyer during the twelve months prior to the effective

date of this Section 20 as the numerator and Seller's total sales

volumes to all Buyers under Rate Schedules FS-1 and IS-1 during

the same period as the denominator.

20.3 The entire amount of each Buyer's obligation to Seller

shall be deemed to be due and payable on the day prior to the

date this Section 20 becomes effective. Buyer may elect either

to pay its proportionate share of Seller's Unrecovered Purchased

Gas Account in full within ten days after receiving Seller's

invoice for such amount, or to pay a volumetric surcharge

designed to recover such amount over a twelve month period, with

interest calculated in accordance with Section 154.501(d) of the

Commission's regulations. In the event Buyer elects to pay

Seller by means of a volumetric surcharge, such surcharge shall

remain in effect until Buyer's proportionate share of the

Unrecovered Purchased Gas Account, plus interest, is fully

recovered. In the event of a credit balance in the Unrecovered

Purchased Gas Account, Seller shall pay each Buyer its

proportionate share of such amount within ten days after such

amount is determined.