Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 03/14/1996, Docket: RP95-296-002, Status: Effective

Third Revised Sheet No. 252 Third Revised Sheet No. 252 : Superseded

Superseding: Second Revised Sheet No. 252

GENERAL TERMS AND CONDITIONS

14. TRANSITION COSTS AND EXIT FEES (Cont'd)

firm services contract with WNG prior to full recovery by WNG of

such customer's direct bill amount, the remaining amount owing, or

portion thereof, will be due upon termination or assignment of such

customer's firm services contract as an exit fee.

WNG will submit two follow-up reports to the Commission after this

Article 14 has become effective. The first report will detail the

final balance in Account No. 191, plus, if the billing of the

balance has commenced by that time, any adjustments to the balance

being billed and the details of the amounts billed to date. The

second report will show the total actual amounts billed to each

customer and will be filed at the end of the amortization period.

14.2 Gas Supply Realignment Costs

Subject to the provisions of the Stipulation and Agreement

(November 24, 1992) in Docket Nos. RP89-183-045, et al., approved

by Commission order issued March 12, 1993 (at 62 FERC 61,240),

this Article 14.2 establishes the procedures under which WNG will

recover its Gas Supply Realignment (GSR) Costs. In the event WNG

incurs GSR Costs not recovered under the Stipulation and Agreement

or Articles 27 and 28, WNG may file to recover costs pursuant to

this Article 14 using the allocation method specified herein, or

any other allocation method subject to approval by the Commission.

(a) WNG will make quarterly filings, as needed, to recover any GSR

Costs actually incurred and booked by the end of the quarter

preceding the filing, and which are known and measurable, plus

carrying charges calculated from the date of incurrence of

such GSR Costs to the projected date of payment as determined

pursuant to Section 154.305 of the Commission's regulations.

(b) Prior to making any gas supply realignment payments to

suppliers which would be recoverable under this Article 14.2,

WNG will offer to assign any contract(s), which it proposes to

realign to its former Rate Schedule F, PR(A), PR(B) and P

customers or to any other Shipper(s) on its system.

include:

(1) payments to reform or terminate contracts, or