Williams Natural Gas Company

Second Revised Volume No. 1

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

Fourth Revised Sheet No. 229 Fourth Revised Sheet No. 229 : Superseded

Superseding: Third Revised Sheet No. 229

GENERAL TERMS AND CONDITIONS

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

9.5 Capacity Curtailment

When unexpected capacity limitations cause WNG to be unable to

deliver the services already scheduled, the physical capacity in

the affected area which WNG determines is available will be

allocated among its customers as follows:

First, to firm Shippers pro-rata, based on MDTQs in the

affected area (Production or Market).

Second, to interruptible Shippers, including AOS under firm

rate schedules, based on rate paid from highest to lowest.

Deliveries at the same rate shall be curtailed pro-rata.

Interruptible Shippers may state, in advance, that they are

willing to pay the maximum rate to avoid or minimize

curtailment.

WNG shall provide prompt notification to all Shippers when it

imposes capacity curtailment. Such notice shall state the reasons

for the curtailment and WNG's estimate of the length of the

curtailment period. WNG shall provide the notice by facsimile and

shall post such notice on its EBB.

9.6 Unauthorized Overdeliveries, Under Receipts, and Penalties

(a) Overdeliveries - During any period of daily balancing, if any

Receiving Party takes a quantity of gas from any Delivery

Point where at least 95% of volumes are measured by electronic

flow measurement equipment (EFM) in excess of the quantity

authorized (the quantity authorized is equal to the quantity

scheduled by WNG and confirmed by the Receiving Party for the

account of all Shippers delivering gas at that location plus

the MDQ(s) for that Delivery Point under Rate Schedules TSS

and STS which are not subject to capacity release), such

excess quantities taken shall be considered Unauthorized

Overdeliveries and shall be subject to daily balancing

penalties as provided in (d) below. Actual quantity taken

shall be determined by reference to recorded EFM data.