West Texas Gas, Inc.

First Revised Volume No. 1

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

First Revised Sheet No. 31 First Revised Sheet No. 31 : Effective

Superseding: ORIGINAL SHEET NO. 31

GENERAL TERMS AND CONDITIONS

(Continued)

19.3(c) Election of a PGA clause (Continued):

(4) West Texas Gas may request a waiver from the Commission of

the PGA election requirements of this section if it demonstrates:

(i) That it is unable to arrange for financing of the

balances accrued in Account No. 191, or

(ii) That it is unable to earn its overall rate of

return last allowed by the Commission because of

the magnitude of the balance in Account No. 191 and

a significant difference exists between the costs

of financing the Account No. 191 balances and the

carrying charges permitted under Paragraph 19.5(h).

(d) Non-PGA clause option. During an election for which

West Texas Gas has elected the non-PGA clause option, it may

only recover for changes in purchased gas costs by filing a

Natural Gas Act section 4 rate filing. West Texas Gas

shall not file tariff sheets to include a PGA clause

in its tariff during the three-year election period.

(e) Three-year filing requirement to establish new base

tariff rate.

(1) General requirement. At least 30 days before

the expiration of 36 months after the effective date of any

previously approved base tariff rate(s), Seller shall file a

tariff sheet(s) restating its rates to establish new base tariff

rate(s) containing the following information:

(i) Seller shall state its agreement that this

filing will automatically be subject to refund

until an agreement is reached or a Commission

determination is made establishing new base tariff

rate(s); and