Williams Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 267 Original Sheet No. 267 : Superseded

GENERAL TERMS AND CONDITIONS

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

(ii) Commencing with the effective date of this Article, all

transportation refunds received by WNG, which relate to

the Transportation Costs recovered pursuant to this

Article, shall be credited to this Account.

(iii) Each month the Account shall be debited (in the event

of a debit balance) or credited (in the event of a

credit balance) with interest, calculated in accordance

with the procedures set forth in Section 154.305(h) of

the Commission's regulations, on the prior month's

ending balance.

(iv) In each Annual Transportation Cost filing, WNG shall

adjust its rates either positively or negatively to

include a surcharge to recover or return the balances

in the applicable FERC Account No. 186 sub-accounts for

Unrecovered Transportation Costs at the end of the

month ending four (4) months prior to the effective

date of the adjustments. The surcharge shall be

determined separately for Reservation (or Demand) and

Commodity and shall equal the applicable balance

divided by the applicable estimated billing

determinants for the TCA Calculation Period.

(f) Direct Billing of Former Customers

In the event a Shipper which was receiving service under an

Affected Rate Schedule terminates or reduces its service

with WNG, WNG shall direct bill the Shipper, for a period of

24 months after the month in which the termination or

reduction becomes effective, the same Reservation (or

Demand) amount as WNG otherwise would have billed Shipper

pursuant to this Article had the termination or reduction

not occurred, even if this Article does not remain in effect

for the entire 24 month period.