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. 248 Original Sheet No. 248 : Effective

GENERAL TERMS AND CONDITIONS

28.5 Applicability of IIPs

(a) To determine the Dollar Valuation of a Shipper's Volumetric

Imbalance, the following factors are applicable:

(i) For Volumetric Imbalances where the Shipper's monthly

deliveries exceed the Shipper's monthly receipts (Shipper owes WTG

Hugoton), the Dollar Valuation is calculated by multiplying the

monthly Volumetric Imbalance by the "Due WTG Hugoton" IIP, as

tiered for the Shipper's imbalance level.

(ii) For Volumetric Imbalances where the Shipper's monthly

receipts exceed the Shipper's monthly deliveries (WTG Hugoton owes

Shipper), the Dollar Valuation is calculated by multiplying the

monthly Volumetric Imbalance by the "Due Shipper" IIP, as tiered

for the Shipper's imbalance level.

(b) To the extent a Shipper has multiple Service Agreements with WTG

Hugoton, the monthly Volumetric Imbalance for all Service Agreement(s) held by

a single legal entity shall be accumulated and netted together prior to

applying the tiered IIP and calculating the monthly Dollar Valuation.

(c) For Volumetric Imbalances created at WTG Hugoton's request for

operational reasons, the Dollar Valuation is calculated by multiplying the IIP

by the Volumetric Imbalance for the applicable month.

(d) For Volumetric Imbalances for Shippers due to prior period

adjustments and measurement correction as set forth on Sheet No. xxx the

Dollar Valuation is calculated by multiplying the IIP by the Volumetric

Imbalance for the applicable month, as tiered for the Shipper's imbalance

level.

No imbalance penalty will be imposed when a prior period adjustment

applied to the current period causes or increases a current month penalty.