Williams Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 237A Original Sheet No. 237A : Superseded

GENERAL TERMS AND CONDITIONS

10. OPERATIONAL FLOW ORDERS (Cont'd)

10.3 Failure to Comply with Operational Flow Orders

If Shipper or Point Operator fails to comply with the terms of an

OFO for reasons other than WNG's negligence or misconduct, such

Shipper or Point Operator shall be liable for a penalty equal to

the greater of $10.00 or 5 times the average Gas Daily Index for

WNG for the days of noncompliance for each Dth by which it deviated

from the requirements of the OFO. If the Point Operator does not

have a transportation service agreement with WNG, the nomination

confirmation shall serve as a contract between WNG and the Point

Operator for purposes of this Article.

Payments received by WNG for OFO penalties shall be credited to

WNG's GSR Costs to be recovered pursuant to Article 14.2.