West Texas Gas, Inc.

First Revised Volume No. 1

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Effective Date: 10/01/1996, Docket: RP96-377-000, Status: Effective

First Revised Sheet No. 27 First Revised Sheet No. 27 : Effective

Superseding: ORIGINAL SHEET NO. 27

GENERAL TERMS AND CONDITIONS

(Continued)

19.2 Definitions (Continued):

(n) Current adjustment means a rate component in

Seller's tariff, determined by applying the unit-of-sales

methodology, used to reflect the difference between:

(1) The current weighted average projected purchased

gas costs, and

(2) The weighted average projected purchased gas costs

reflected in the effective period of the previous

scheduled PGA.

(o) Deferral period means a period of 12 months ending four

months before the effective date of Seller's annual PGA

filing.

(p) Surcharge rate amortization period means the time

period approved by the Commission during which a surcharge rate,

determined under Paragraph 19.5 hereof, is charged by Seller.

(q) Unpaid accrual means an expense for services rendered

or property delivered to Seller for which Seller has

a legally enforceable obligation to pay which Seller has

not paid within its billing and payment cycle, provided that the

billing and payment cycle does not exceed 60 days from the end of

the month in which the services were rendered or property was

delivered.