West Texas Gas, Inc.

First Revised Volume No. 1

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

Original Sheet No. 32Q Original Sheet No. 32Q : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

19.6 Assessment of past performance.

(a) General rule.

(1) Prior Commission approval is required before

Seller may recover through a surcharge (surcharge recovery)

its actual purchased gas costs (determined in Paragraph 19.6

(d) below) that exceed its computed projected purchased

gas costs (determined in Paragraph 19.6(e) below) for each

test interval (described in Paragraph 19.6(b) below) by

three percent.

(2) Seller determines the amount of gas costs which

requires specific Commission approval for surcharge recovery

under Paragraph 19.6(c) below.

(3) If the Commission denies Seller recovery of any

under-recovered purchased gas costs as a result of this

section, then the amounts denied recovery shall be credited

to Account No. 191 and charged to Account No. 426.5, "Other

Deductions" of the Uniform System of Accounts in 18 C.F.R

Part 201.

(b) Test intervals. Seller shall divide the deferral

period into four test intervals. The first test interval is the

first four months of the deferral period. The second test

interval is the three months following the first interval. The

third interval is the three months following the second interval.

The fourth interval is the remaining two months of the deferral

period.