West Texas Gas, Inc.

First Revised Volume No. 1

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

Original Sheet No. 32K Original Sheet No. 32K : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

19.5(h) Annual PGA Filing (Continued):

(2) Method. To compute carrying charges, Seller shall

multiply the carrying charge rate specified in paragraph (h)(4)

of this section by the appropriate carrying charge base specified

in paragraph (h)(3) of this section.

(3) Carrying charge base. (i) The carrying charge base for

the refund, revenue credits and billing adjustments subaccount

will be the prior month's ending refund, revenue credit and

billing adjustment subaccount balance of Account No. 191 adjusted

for any applicable deferred income taxes recorded consistent with

Section 19.3(c) hereof and reduced for unpaid accruals, if any.

(ii) The carrying charge base for any other subaccounts of

Account No. 191 will be the prior month's ending

subaccounts' balances:

(A) Reduced for unpaid accruals;

(B) Adjusted for any applicable deferred income taxes as

recorded in either Account No. 283, or Account No. 190

consistent with Section 19.3(c) hereof; and

(C) Increased or decreased for exchange transactions and

transportation imbalances cost adjustments, determined in

paragraph (j) of this section.