West Texas Gas, Inc.

First Revised Volume No. 1

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

Original Sheet No. 32I Original Sheet No. 32I : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

19.5(f) Annual PGA filing (Continued):

(2) If the Commission does not approve the continued

recognition of any unpaid accruals described in paragraph (f)(1)

of this section as purchased gas costs, the amounts shall be

credited to the refund subaccount of Account No. 191 as specified

by the Commission order.

(g) Balances in the current deferral subaccount in Account

No. 191. The accumulated subaccount balances of Account No. 191

may include:

(1) Monthly deferrals of under- or overrecovered gas costs

computed as set forth below:

(i) The monthly deferrals are the amounts determined by taking

the difference between A and B where:

A= The total actual monthly cost of gas purchased as determined

under paragraph (g)(l)(ii) of this Paragraph 19.5, and

B= The projected unit cost of purchased gas determined under

paragraph (c) of this Paragraph 19.5 that is recovered through

the base cost of gas rate plus the cumulative current adjustment

rate, multiplied by the actual quantities of gas sold under

each current adjustment rate in effect during the month.

(ii) The actual cost of gas purchased used to calculate

the monthly deferrals of under- or over-recovered purchased

gas costs are the purchased gas costs, as defined in Section

19.2(j) above, as adjusted for exchange transactions and

transportation imbalances under paragraph (j) of this

Paragraph 19.5.

The actual cost of gas purchased under this paragraph shall

be attributable to gas quantities purchased and received in

a month, that are paid for, or are for amounts known within

60 days of the end of the month in which the purchases were

made and received that have not yet been paid.