W T G Hugoton, LP

Original Volume No. 1

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Effective Date: 08/01/2007, Docket: CP06- 90-003, Status: Effective

Original Sheet No. 255A Original Sheet No. 255A : Effective

 

GENERAL TERMS AND CONDITIONS

 

WTG Hugoton shall place all such revenues in a processing account and

shall distribute the revenues as follows: First, if prior to the beginning of

each month, a party notifies WTG Hugoton that it is claiming the right to

process the volumes to be transported pursuant to a transportation service

agreement that actually flow through the processing plant but for which the

party does not have a processing arrangement with the processing plant, WTG

Hugoton will allocate the revenue received from the processing plant first to

all notifying parties on a pro rata GPM basis. The notification will be made

to WTG Hugoton via the nomination process and will include an affidavit.

 

Second, the remainder of the revenues, after the revenues are

allocated to the parties pursuant to the above paragraph, will be credited to

the transportation commodity rates. WTG Hugoton will make a limited NGA

Section 4 filing to reduce its transportation commodity rate for any

accumulated revenues received from processing related to Strangers' gas when

the annual total would result in a reduction of $0.005 or more in the

currently effective commodity rates.

 

Prior to any allocation of revenue received from the processing plant,

WTG Hugoton will be reimbursed from such revenue each month an amount to cover

the increased administrative costs associated with the allocation of the

revenues.

 

In the event WTG Hugoton is held liable for any revenues which have

been allocated and distributed to any party in addition to any other remedy it

may have, WTG Hugoton shall have the right to reduce the amount of revenues to

be distributed pursuant to the transportation commodity rate crediting

methodology set forth above for future months by the amount paid by WTG

Hugoton for such liability including attorneys' fee and court costs.

 

Upon WTG Hugoton's request, Shipper or its designee shall provide to

WTG Hugoton the GPM content of the gas tendered to WTG Hugoton by Shipper or

its designee at the Points of Receipt under Shipper's Service Agreement or

information which WTG Hugoton deems sufficient to calculate the theoretical

GPM content of such gas for allocation purposes. WTG Hugoton shall have the

right to use reasonable means to ensure the accuracy of the information

provided by Shipper or its designee.