W T G Hugoton, LP

Original Volume No. 1

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

Original Sheet No. 247 Original Sheet No. 247 : Effective

 

GENERAL TERMS AND CONDITIONS

 

28.3 Determination of Imbalance Index Prices (IIPs)

 

(a) The Imbalance Index Price shall be determined each month and shall

be equal to the arithmetic average of the five average weekly prices at

Panhandle, TX-Okla, as published in "Gas Daily." The five-week period is

defined as beginning on the first Tuesday of the calendar month for which the

IIP is being established and ending on the first or second Monday of the

following month, whichever is applicable, to arrive at a five-week period.

 

Imbalance quantities will be dollar valued using the IIPs set forth above.

 

(b) If a price discovery is eliminated or redefined, or ceases to be

published in "Gas Daily," WTG Hugoton will notify shippers via an Internet

website posting. WTG Hugoton will make a tariff filing to change the IIP

pricing methodology.

 

(c) WTG Hugoton will electronically post, on or before the 15th day of

the following month, the IIPs, including the tiered values, to be used for the

previous calendar month.

 

28.4 Tiering of IIPs

 

The IIP is tiered based upon the monthly imbalance level of the legal

entity, in accordance with the following schedule:

 

Imbalance Level* Due WTG Hugoton Due Shipper

------------------------- ----------------- ------------

0% - 3% IIP * 1.00 IIP * 1.00

Greater than 3% up to 5% IIP * 1.02 IIP * 0.98

Greater than 5% up to 10% IIP * 1.10 IIP * 0.90

Greater than 10% up to 15% IIP * 1.20 IIP * 0.80

Greater than 15% up to 20% IIP * 1.30 IIP * 0.70

Greater than 20% IIP * 1.40 IIP * 0.60

 

* The imbalance level is determined by dividing the legal entity's monthly

Volumetric Imbalance by its monthly deliveries.

 

The tier valuation factors listed above will be applied to the portion of

the imbalance level which falls within each tier.