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. 49 First Revised Sheet No. 49 : Effective

Superseding: Substitute Original Sheet No. 49

RATE SCHEDULE

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

Interruptible Transportation Service

(Continued)

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.

When Transporter has previously paid for all or

a portion of delivery point facilities under

this facilities reimbursement policy, Customer

shall, nevertheless, promptly pay Transporter

for Transporter's net book value of such

facilities when either of the following events

occurs: (1) when Transporter's ability to

fully recover such costs is denied in any

Section 4 or Section 5 rate proceeding, or (2)

when Customer ceases operations at the delivery

point where the facilities were installed.

(b) Transporter shall not construct or modify any

facilities hereunder which will result in an

increase or decrease in Transporter's mainline

capacity, or which may compromise the opera-

tional integrity of Transporter's pipeline

system. For those facilities which Transporter

agrees to construct, Transporter will construct

those facilities (1) pursuant to and subject to

the authorization granted in Subpart F of Part

157 of the Regulations of the Federal Energy

Regulatory Commission or (2) where the prior

authorization of the Federal Energy Regulatory

Commission is not required to construct such

facilities.