Williams Natural Gas Company

Second Revised Volume No. 1

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

Original Sheet No. 279 Original Sheet No. 279 : Superseded

GENERAL TERMS AND CONDITIONS

25. GAS RESEARCH INSTITUTE RD&D FUNDING UNIT

25.1 Purpose

WNG has joined with other gas enterprises in the formation of and

participation in the activities and financing of Gas Research

Institute (GRI), an Illinois, not for profit, corporation. GRI

has been organized for the purpose of sponsoring Research,

Development and Demonstration (RD&D) programs in the field of

natural and manufactured gas for the purpose of assisting all

segments of the gas industry in providing adequate, reliable,

safe, economic and environmentally acceptable gas service for the

benefit of gas consumers and the general public.

For the purpose of funding of GRI's approved expenditures, this

Article 25 establishes a GRI Funding Unit or Units to be

applicable to WNG's services, except for service under Rate

Schedules FSS, ISS, and PAS, as set forth on Sheet Nos. 6 and 6A

of this FERC Gas Tariff, provided such charge shall not be

applicable to transportation of gas which is subject to a charge

for RD&D by GRI under the effective FERC Gas Tariff of another

interstate pipeline and provided that such charge shall not be

charged twice on the same unit of gas under WNG's rate schedules.

25.2 Basis of the GRI Adjustment Charge

WNG shall apply the GRI Funding Unit or Units to the services

specified in 25.1 above in the manner approved by the FERC. Such

funding unit or units shall be adjusted to WNG's temperature

base, pressure base, and heating value, if required. The GRI

Funding Unit or Units shall be reflected on Sheet Nos. 6 and 6A

of this Volume No. 1 Tariff.

25.3 Filing Procedure

The initial GRI Funding Unit or any subsequent changes in such

funding unit or units shall be filed by WNG at least thirty (30)

days prior to the proposed effective date.