Williams Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 260 Original Sheet No. 260 : Superseded

GENERAL TERMS AND CONDITIONS

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

(5) Regardless of whether the Shipper elects the three (3)

month or twenty-four (24) month payment option, the GSR

Reservation Surcharge Amounts hereunder together with

the applicable carrying charges, shall accrue in full

as of the effective date of any quarterly filing, shall

be unaffected by, and shall remain in effect following,

any expiration or termination of Shipper's service

agreement with WNG. Notwithstanding anything herein or

in any contract to the contrary, WNG shall have the

right to sell or assign to a third party or parties

amounts payable by any Shipper.

(e) Ten percent (10%) of such GSR Costs shall be reflected in

revised rates for Rate Schedule ITS service which shall be

designed to recover over the following twenty-four (24)

months said ten percent (10%) of WNG's GSR Costs. A portion

of the Rate Schedule ITS revenue as determined pursuant to

Article 14.2(f) shall be credited to the recovery of GSR

Charges collected by WNG.

(f) Any GSR Costs actually incurred and recovered from Shippers

under Rate Schedules TSS, STS, FTS, and SFT, but

subsequently required by the Commission to be refunded,

shall be refunded to such Shippers, on the same allocation

basis as they were collected, within sixty (60) days after

the date of a final Commission order requiring such refunds.

Any GSR Costs actually incurred and deemed recovered from

Shippers under Rate Schedule ITS shall be credited to the

GSR Costs to be included in the rates for Rate Schedule ITS

in the next quarterly filing.