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

First Revised Sheet No. 48 First Revised Sheet No. 48 : Effective

Superseding: Substitute Original Sheet No. 48

RATE SCHEDULE

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

Interruptible Transportation Service

(Continued)

For purposes of determining whether a project

is economically beneficial to Transporter,

Transporter will evaluate each prospective

project based upon the incremental cost of

service of the facilities to be constructed by

Transporter, and the incremental revenues which

Transporter estimates will be generated as a

result of constructing and/or modifying such

facilities.

In estimating the incremental revenues to be

generated, Transporter will calculate the

revenues based upon its currently effective

maximum transportation rates, exclusive of any

surcharges, and the projected incremental

volumes which will result from the project.

Transporter will consider volumes to be

incremental 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, Transpor-

ter shall utilize the methodologies for calcu-

lating cost of service which underlies its cur-

rently effective transportation rates.