Texas Gas Transmission Corporation

First Revised Volume No. 2-A

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Effective Date: 01/01/1993, Docket: TM93-2-18-001, Status: Effective

Sub First Revised Sheet No. 107 Sub First Revised Sheet No. 107 : Effective

Superseding: Original Sheet No. 107

GENERAL TERMS AND CONDITIONS

(Continued)

20.2 Basis of the GRI Adjustment Charge: Transporter's

General RD&D Funding Units shall be that per unit

demand or commodity amount, adjusted to

Transporter's pressure base and heating value, if

required, which has been approved by Federal Energy

Regulatory Commission orders approving GRI's RD&D

expenditures or funding mechanism.

20.3 Filing Procedure: At least thirty (30) days prior

to the proposed effective date of any filings, pur-

suant to this subsection, Transporter shall file

with the Federal Energy Regulatory Commission, and

post, pursuant to Section 154.16 of the Commisson's

Regulations, the applicable tariff sheets unless,

for good cause shown, a lesser notice period and

different effective date is allowed by valid

Commission order. Any such filing shall not become

effective unless it becomes effective without sus-

pension or refund obligation.

20.4 Remittance to GRI: Transporter shall remit to GRI,

not later than fifteen (15) days after the receipt

thereof, all monies received by virtue of the Gen-

eral RD&D Funding Units, subject to the FERC-

approved funding mechanism, less any amounts

properly payable to a Federal, State or Local

authority relating to the monies received

hereunder. Transporter will remit to GRI only

those GRI surcharge revenues actually collected.

Thus, on non-discounted transactions the full

demand/reservation and/or commodity surcharge will

be remitted to GRI. On discounted transactions,

Transporter will remit to GRI, after taking into

account the collection of all other surcharges and

rate components, only the amount, if any, by which

the GRI surcharge exceeds the amount of the

discount. Exception: For the calendar year 1993

only, Transporter will charge a uniform demand or

reservation surcharge of eight cents per MMBtu per

month on all firm sales or transportation entitle-

ments. With respect to transactions involving

discounted demand or reservation charges,

Transporter's total 1993 GRI funding responsibiity

is limited to 10 percent of its total 1991 GRI

contributions.