Texas Gas Transmission Corporation

First Revised Volume No. 2-A

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Effective Date: 06/01/1991, Docket: RP90-192-005, Status: Effective

Second Revised Sheet No. 23 Second Revised Sheet No. 23 : Effective

Superseding: First Revised Sheet No. 23

RATE SCHEDULE

FT-SL, FT-1, FT-2, FT-3 and FT-4

Firm Transportation Service

(Continued)

Transporter will consider volumes to be incre-

mental if any of the following criteria are

met:

(i) the volumes which will be transported

through the contemplated delivery facili-

ties are in excess of the volumes which

could be transported through existing

metering facilities, considering both the

capacity of the existing metering facili-

ties and the currently effective priori-

ties of service through such meters; or

(ii) the volumes which will be transported are

to a new end-use customer or market, or

to a customer or market which hasn't been

served for the twelve months prior to the

date of request for the meter facilities

additions.

In calculating the incremental cost of service

of the facilities to be constructed, Trans-

porter shall utilize the methodologies for

calculating cost of service which underlies its

currently effective transportation rates.

Based on the above listed criteria, a project

shall be economically beneficial when the

projected first year incremental revenues equal

or exceed the projected first year incremental

cost of service. When the project is deter-

mined to be economically beneficial, Trans-

porter will pay for the cost of the contem-

plated facilities. When the delivery point

facilities do not qualify under the economic

test of this section, the facilities shall be

installed at Customer's expense.