Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 04/01/1997, Docket: RP96-387-000, Status: Effective

First Revised Sheet No. 229A First Revised Sheet No. 229A : Superseded

Superseding: Substitute Original Sheet No. 229A

GENERAL TERMS AND CONDITIONS

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

Penalties will be levied by WNG against the Receiving Party

who controls the facilities into which gas is delivered. If

the Receiving Party does not have a transportation service

agreement with WNG, the nomination confirmation shall serve as

a contract between WNG and the Receiving Party for purposes of

paragraph (d) below.

(b) Under Receipts - During any period of daily balancing, if any

Delivering Party delivers a quantity of gas into WNG's system

at any Receipt Point, where at least 95% of volumes are

measured by electronic flow measurement equipment (EFM), less

than the nominations confirmed at such receipt point by such

Delivering Party, the difference between the confirmed

nomination and the actual quantity delivered shall be

considered Unauthorized Under Receipts and shall be subject to

daily balancing penalties as provided in (d) below. Actual

quantity delivered shall be determined by reference to

recorded EFM data. Penalties will be levied by WNG against

the Delivering Party who controls the facilities from which

gas is delivered. If the Delivering Party does not have a

transportation service agreement with WNG, the nomination

confirmation shall serve as a contract between WNG and the

Delivering Party for purposes of paragraph (d) below.

under Rate Schedule(s) TSS, STS, FTS, SFT, and/or FSS may be

subjected to daily balancing penalties by (1) exceeding any of

the production area or market area MDTQs or MDWQ, reduced if

necessary to reflect such items as capacity release, or

(2) depleting its available gas in storage. Any volumes taken

in excess of the production area or market area MDTQ's or MDWQ

or any storage withdrawals made after such Shipper's storage

account(s) is/are depleted, shall be considered Unauthorized

Capacity Overrun and shall be subject to daily balancing

penalties equal to 12 times the maximum monthly reservation

rate for the applicable area per Dth; provided, however, that

a 3% tolerance in excess of MDTQ shall be permitted. For any

Receiving Party who is also a Shipper under this paragraph,

any quantities taken in excess of MDQ at any delivery point

will be credited to any quantities taken in excess of that

party's MDTQ in total. Revenues received by WNG for