West Texas Gas, Inc.

First Revised Volume No. 1

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

Original Sheet No. 32B Original Sheet No. 32B : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

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

(A) This refund obligation will be limited to the

amount collected in excess of the prior or

suspended base tariff rate.

(B) The rate reduction, if any, below the old base tariff

rate(s) is to be prospective from the date of the Commission's

order determining the new base tariff rate(s).

19.4 Scheduled annual and quarterly PGA filings.

(a) General rule. If Seller elects a PGA clause

pursuant to Paragraph 19.3(b), it shall file under the schedule

specified in paragraph (c) of this paragraph:

(1) An annual PGA filing described in Paragraph 19.5 that

contains both a current adjustment to reflect any changes in West

Texas Gas' purchased gas costs since its last

scheduled quarterly PGA filing and a surcharge rate adjustment to

clear any ending balance(s) in the current deferral subaccount(s)

of Account No. 191; and

(2) Three quarterly PGA filings described in Paragraph 19.7

that contain current adjustments to track any changes in

West Texas Gas' purchased gas costs since its last

scheduled PGA filing.

(b) Exception to rate change filing requirement. Except

for the surcharge rate adjustment described in Paragraph 19.5(d),

Seller may reflect a purchased gas adjustment in its rates only

if the adjustment represents a dollar amount equal to at least

1 mill ($0.001) per MMBtu of jurisdictional sales.