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. 274 Original Sheet No. 274 : Effective

 

GENERAL TERMS AND CONDITIONS

 

42.5 Deferred GRO Account

 

WTG Hugoton shall maintain the Deferred GRO Account for each Deferral

Period in accordance with the following procedures. Separate Deferred GRO

Accounts shall be maintained for each fuel zone as defined on Sheet No. 5.

 

(a) WTG Hugoton shall determine each month the Actual GRO quantities

attributable to each fuel zone.

 

(b) WTG Hugoton shall determine each month the actual recovery of GRO

quantities by multiplying, as applicable, WTG Hugoton's FRP's by the actual

volume determinants for each fuel zone.

 

(c) Each month, WTG Hugoton shall determine the difference, positive or

negative, between the quantities computed in Section 42.5(a) and 42.5(b) and

multiply such difference by the currently applicable GRO Index as defined in

Section 42.6 herein. The resulting product shall be recorded each month in a

subaccount of Account No. 186 of the Uniform System of Accounts which WTG

Hugoton shall designate as a Deferred GRO Account. Interest shall be computed

on the balance in WTG Hugoton's Deferred GRO Account, positive or negative,

based on the method prescribed in Section 154.403(7) of the Commission's

Regulations.

 

(d) WTG Hugoton shall incorporate the applicable Deferred GRO Account

balances into each annual FRP filing by dividing (i) the current balance in

the Deferred GRO Account by (ii) the weighted average value of the GRO Index

for the Deferral Period.

 

42.6 GRO Index

 

For any month, the GRO Index shall be equal to the Imbalance Index

Price, calculated as set forth in Section 28.3 of the General Terms and

Conditions.

 

42.7 Prior Period Adjustments

 

Except as provided below, prior period adjustments included in the

Actual GRO quantities shall be limited to prior period adjustments that relate

to the twenty-four month period immediately prior to the beginning of the

Deferral Period. The twenty- four month limitation on prior period

adjustments shall apply to adjustments in favor of Shippers and those in favor

of WTG Hugoton; provided that the twenty-four month limitation associated with

adjustments in favor of Shipper shall not apply to adjustments resulting from

WTG Hugoton's negligence or willful misconduct.