Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 05/01/1997, Docket: RP97- 67-002, Status: Effective

Fifth Revised Sheet No. 228 Fifth Revised Sheet No. 228 : Superseded

Superseding: Fourth Revised Sheet No. 228

GENERAL TERMS AND CONDITIONS

9. SCHEDULING, CURTAILMENT AND IMBALANCES (Cont'd)

Third, firm Shippers using secondary delivery points not

located on the same line segment as the primary delivery point

under such Shipper's service agreement up to the MDTQ of the

service agreement,

Fourth, ITS and AOS Shippers based on rate paid, from highest

to lowest. ITS and AOS Shippers, whose gas is already flowing

at a discounted rate, may state, in advance, that they are

willing to pay the maximum rate to retain service in the event

WNG receives a higher bid.

system to schedule all firm quantities nominated, Shipper

provided rankings will be used when making reductions, as

noted in Section 9.1(d) above.

(d) Quantities will not be scheduled at receipt points or delivery

points unless confirmed by the Delivering Party or Receiving

Party controlling the facilities.

9.4 Periods of Daily Balancing

A period of daily balancing occurs when confirmed nominations and

anticipated no-notice service deliveries are expected to exceed

anticipated receipts plus WNG's firm storage withdrawal

obligations. During such periods of daily balancing, actual

receipts and deliveries of gas will be allocated to no-notice

transportation and storage agreements on a daily basis rather than

on a monthly basis. WNG will post on its EBB a "Notice of

Implementation of Daily Balancing Procedures" by 5 p.m., for such

daily balancing procedures to be effective the second gas day after

issuance, or such shorter periods as may be necessary to protect

the integrity of WNG's system. Time of posting on the EBB shall be

considered the official time of notification. Such period of daily

balancing will be applicable to all rate schedules and will, to the

maximum extent possible, be imposed only on those portions of WNG's

system where service integrity is threatened. PDAs and OBAs will

remain in effect during periods of daily balancing. Such notice

will remain on WNG's EBB throughout such period of daily balancing.

The period of daily balancing will be lifted when confirmed

nominations and anticipated no-notice service deliveries are not

expected to exceed anticipated receipts plus storage withdrawal

capability on WNG's pipeline system.