Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 10/01/1993, Docket: RS92- 12-003, Status: Effective

Original Sheet No. 237 Original Sheet No. 237 : Superseded

GENERAL TERMS AND CONDITIONS

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

(i) Net imbalances in excess of the tolerance provided

above with Shippers subject to this paragraph (c) which

are not resolved by the end of the first month

following the month in which the imbalance occurred

shall be subject to a balancing fee equal to the

maximum rate under Rate Schedule ISS, plus associated

storage fuel and loss. Shippers remain responsible for

actual elimination of the imbalance, notwithstanding

the payment of the balancing fee.

(ii) Net imbalances in excess of the tolerance provided

above with Shippers subject to this paragraph (c) which

are not resolved by the end of the second month

following the month in which the imbalance occurred

shall be cashed-out according to the schedule set forth

in (A) and (B) below. Spot price refers to the spot

market price applicable to WNG as published in the

first issue of Inside FERC's Gas Market Report for the

month in which the imbalance occurred.

(A) Receipts in excess of deliveries shall be

purchased by WNG from the Shipper at the following

prices:

Percent by which receipts

exceed deliveries Purchase Price

Up to 10% or 1,000 Dth N/A

ò10% but less than 15% .7 x spot price

ò15% but less than 20% .6 x spot price

ò20% .5 x spot price