West Texas Gas, Inc.

First Revised Volume No. 1

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

Original Sheet No. 32J Original Sheet No. 32J : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

19.5(g) Annual PGA filing (Continued):

(2) Adjustments to a prior month's actual cost of gas

purchased as determined under paragraph (g) of this section.

(3) Adjustments to a prior month's revenue due to a

revision to that prior month's sales level.

(4) Transfers of any unamortized amounts remaining in a

deferral subaccount of Account No. 191 after the related

surcharge amortization period has expired.

(5) Carrying charges, determined pursuant to Paragraph 19.5(h),

and

(6) Transfers of any amounts remaining in a refund

subaccount determined under Paragraph 19.5(i),

to be amortized as part of the surcharge balance.

(h) Carrying charges - (1) General rule. Seller shall

compute carrying charges on the Account No. 191 balance. After

computing carrying charges, Seller shall:

(i) Compound carrying charges on a calendar quarter basis,

as specified in Section 154.501; and

(ii) Debit carrying charges to Account No. 191 if the

carrying charge base, specified in paragraph (h)(3) of this

section, is a debit (positive), and credit carrying charges

to Account No. 191 if the carrying charge base, specified in

paragraph (h)(3) of this section is a credit (negative).