W T G Hugoton, LP

Original Volume No. 1

Effective Date: 08/01/2007, Docket: CP06- 90-002, Status: Effective

Original Sheet No. 246 Original Sheet No. 246 : Effective

GENERAL TERMS AND CONDITIONS

27.5 Revenues associated with penalties shall be credited to Shippers in

accordance with Section 45.1 of the GENERAL TERMS AND CONDITIONS.

27.6 Receipt point volumes which can be independently verified by WTG Hugoton

(verifiable receipt point volume) will not be subject to the monthly receipt

scheduling penalty.

28. BALANCING

Mandatory cash-out/in shall not apply to Operational Balancing

Agreements (OBAs), except as provided in Section 25.2(e) of the General Terms

and Conditions.

28.1 Definitions

(a) Volumetric Imbalance. Volumetric imbalance shall mean the volume

difference between receipts and deliveries, without consideration of the

dollar value of such volume but with consideration of the applicable Fuel and

unaccounted-for.

(b) Dollar Valuation or Dollar Volume Imbalance. Dollar Valuation or

Dollar Volume Imbalance shall be calculated by first determining the monthly

Volumetric Imbalance and then multiplying it by the Imbalance Index Price (as

defined below) for the same month.

28.2 Dollar Valuation

WTG Hugoton and Shipper, or its Designee, shall receive and deliver

thermally equivalent gas volumes as nearly as practicable at uniform hourly

and daily rates of flow. Volume differences between monthly receipts and

deliveries shall be accumulated and recorded in a Shipper account. WTG

Hugoton and Shipper shall manage monthly receipts or deliveries so that the

account balance shall be kept as near to zero as practicable. Imbalances shall

be valued on a dollar volume basis, which means that WTG Hugoton will first

determine the imbalance quantity for each month by legal entity on an

dekatherm basis and then will determine a dollar value using the dekatherm

quantity and the Imbalance Index Price, as tiered for imbalance level.