Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 05/01/1997, Docket: RP97- 67-002, Status: Effective

Second Revised Sheet No. 263 Second Revised Sheet No. 263 : Superseded

Superseding: Substitute First Revised Sheet No. 263

GENERAL TERMS AND CONDITIONS

18. BILLING AND PAYMENTS (Cont'd)

If failure to pay continues for thirty days after payment is due and WNG

has provided Shipper(s) and the FERC, with at least 30 days notice, WNG,

in addition to any other remedy it may have under the service agreement,

may suspend service under all service agreements with any Shipper who is

liable for such payment until satisfactory credit arrangements have been

made. Further, after such failure to pay and application to and

authorization by the Federal Energy Regulatory Commission, if that

authorization is necessary, WNG may terminate the service agreements and

cease all service thereunder. However, if Shipper in good faith shall

dispute the amount of any such bill or part thereof and shall pay to WNG

such amounts as it concedes to be correct and at any time within thirty

days after a demand made by WNG shall furnish good and sufficient surety

bond or other mutually acceptable security, guaranteeing payment to WNG

of the amount ultimately found due upon such bills after a final

determination which may be reached either by agreement or judgment by

the courts, as may be the case, WNG shall not be entitled to terminate

the service agreement or cease service thereunder until default be made

in the conditions of such bond.

Under capacity assignment arrangements, if the Replacement Shipper fails

to pay within sixty days, the Releasing Shipper will be liable, and will

be billed for full payment of the reservation charge and reservation

surcharges. If the Releasing Shipper fails to pay the reservation

charges which it remains responsible for, service may be suspended or

terminated, pursuant to the provisions of the previous paragraph to both

that Releasing Shipper and to its Replacement Shipper who is shipping

under assignment of the agreement for which the reservation charges are

due.

Prior period adjustment time limits must be six (6) months from the date

of the initial invoice, with a three (3) month rebuttal period,

excluding government-required rate changes. This standard shall not

apply in the case of deliberate omission or misrepresentation or mutual

mistake of fact. Parties' other statutory or contractual rights shall

not otherwise be diminished by this standard.