Williams Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 274 Original Sheet No. 274 : Superseded

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, the Releasing Shipper will be liable for full payment of

the reservation charge and reservation surcharges and service to that

Releasing Shipper may be suspended or terminated pursuant to the

provisions of the following paragraph. 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 following 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.

19. POSSESSION OF GAS AND TITLE

WNG shall be in control and possession of the natural gas it receives

hereunder and responsible, as between WNG and Shipper, for any damage

or injury caused thereby until the same has been delivered to Shipper

at the point of delivery; provided, however, WNG shall not be

responsible for damages or injuries caused by natural gas it receives

while such gas is in the possession and control of any third party.

However, Shipper, at all times, shall retain title to the gas or the

right to deliver all gas to WNG under an executed Service Agreement

free and clear of all liens, encumbrances and claims whatsoever.