Williams Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 259 Original Sheet No. 259 : Superseded

GENERAL TERMS AND CONDITIONS

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

(1) WNG shall render a bill for the entire amount of each

Shipper's GSR Reservation Surcharge Amount with respect

to the quarterly filing on or after the fifteenth day

of the month following the effective date of the

filing. Such amount shall be payable in three (3)

consecutive monthly installments equal to 1/3 of such

entire amount.

(2) Each Shipper shall have the option, in lieu of payment

of such GSR Reservation Surcharge in three

installments, of paying twenty-four (24) consecutive

monthly installments equal to 1/24 of such entire

amount. Additional carrying charges on such amount

shall be calculated and included on each monthly bill

for those Shippers electing the twenty-four (24) month

payment option.

(3) Monthly amounts shall be payable within ten days after

the date of the invoice. Any Shipper may, at any time,

pay all or a portion of its unpaid GSR Reservation

Surcharge Amount and in such event its obligation for

carrying charges shall be applicable only to amounts

unpaid. Carrying charges on unpaid principal amounts

for those Shippers electing to extend their payments

hereunder shall be determined using the methods

specified in Section 154.305 of the Commission's

regulations.

(4) Should Shipper fail to pay any amount on the date due

hereunder, additional interest thereon shall accrue at

the rate computed using the factors specified in

Section 154.305 of the Commission's regulations, until

such time as the full amount due has been paid or

collected.