West Texas Gas, Inc.

First Revised Volume No. 1

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

Original Sheet No. 32A Original Sheet No. 32A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

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

(2) Effect of a filing under Section 154.301. If a Natural

Gas Act section 4 rate change proceeding under Section 154.301 of

the Regulations is filed before the expiration of the 36-month period,

a new 36-month period will begin when the rates proposed in the

Section 154.301 filing go into effect. Rates determined by the

Commission in a general Natural Gas Act section 4 rate proceeding

pursuant to Section 154.301, or section 5(a) of the Natural Gas Act, or

rates in a settlement agreement approved by the Commission will

establish the new base tariff rates when they become effective

pursuant to a Commission order, and a new 36-month period will

start.

(3) Restatement of new base tariff rate. If, either as a

result of a Commission approved agreement among Seller, its

jurisdictional customers, interested state commissions, and the

Commission staff, or, as a result of a Commission determination

after a hearing, it is found, based on the cost study prescribed

in paragraph (e)(l)(ii) of this section, that the jurisdictional

cost-of-service is less than jurisdictional revenues collected

for the same 12-month period used in the cost study, as adjusted,

West Texas Gas shall:

(i) Restate its base tariff rate(s);

(ii) File with the Commission a revised tariff sheet(s)

reflecting a reduction in its jurisdictional rates

by an amount equal to the excess revenues agreed

upon or determined; and

(iii) Refund to its jurisdictional customers any excess

amounts collected subject to refund to the date of

billing under the revised tariff sheet(s), with

interest to that date.