West Texas Gas, Inc.

First Revised Volume No. 1

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

Sub. Third Revised Sheet No. 25 Sub. Third Revised Sheet No. 25 : Effective

Superseding: Second Revised Sheet No. 25

GENERAL TERMS AND CONDITIONS

(Continued)

21. Annual Charge Adjustment Provision

21.1 Purpose: The purpose of this provision is to permit

Seller to recover the annual charges assessed by the Federal

Energy Regulatory Commission pursuant to Part 382 of its

regulations. For purposes of recovering such charges, this

Section establishes, pursuant to Section 154.402 of the

Commission's regulations, an "ACA Surcharge" to be applicable

to all gas sold under all of Seller's rate schedules contained

in Volume Nos. 1 and 2 of Seller's FERC Gas Tariff. This amount

shall be in addition to any amounts otherwise payable to Seller

under said rate schedules.

21.2 Basis for Annual Charge Adjustment: Each of Seller's

rate schedules shall include an Annual Charge Adjustment unit

charge (ACA unit charge) applicable to each Mcf of gas sold or

transported thereunder. Such unit charge shall be included as

a Surcharge on the effective Sheet No. 4 of Seller's FERC Gas

Tariff, First Revised Volume No. 1. The ACA unit charge shall

be recovered on a volumetric basis.

21.3 Changes to the ACA unit charge shall be filed annually to

reflect the annual charge unit rate authorized by the Commission

each fiscal year and are subject to the 30 day notice requirement

of the Commission's regulations. In the event the Commission's

establishment of such ACA unit charge for any particular year

prevents Seller from making a timely filing for a change to its

ACA surcharge, then the notice requirements shall be deemed

waived upon approval by the Commission.

21.4 The amount applicable to each Buyer under its respective

rate schedule shall be due and payable with the bill for the

month to the customer.