Texas Gas Transmission Corporation

First Revised Volume No. 2-A

Effective Date: 11/01/1993, Docket: RP93-106-001, Status: Suspended

Sub Original Sheet No. 129Q Sub Original Sheet No. 129Q : Suspended

GENERAL TERMS AND CONDITIONS

(Continued)

30. Tracking of Fuel Use Consumption or Btu Energy Tax

30.1 In the event that the Federal or any state govern-

ments enact a consumption or Btu energy tax (energy

tax) on fuel used by pipelines or on gas sold or

transported by pipelines, Texas Gas shall track the

cost of such tax and file semi-annually to recover

such costs. These costs shall be recovered through

adjustments and surcharges to the sales and transport

commodity rates contained in Texas Gas's FERC Gas

Tariffs, Original Volume No. 1, and First Revised

Volume No. 2-A.

30.2 Subsequent to the final passage of an applicable

energy tax law, Texas Gas shall file to adjust its

sales and transport rates to reflect projected energy

tax costs over the six-month period beginning with

the month the tax becomes effective. This projected

cost shall be divided by the projected commodity

sales and transport volumes for the same six months

to calculate the current commodity rate adjustment.

Texas Gas shall make such filings on a semi-annual

basis thereafter.

30.3 Commencing with the effective date of the applicable

energy tax law, Texas Gas shall debit such actual

costs to Account 186.xx, Deferred Energy Tax Account.

Any amounts collected by Texas Gas through the

current rate adjustment in Section 30.2 shall be

credited to Account 186.xx. A subaccount of Account

186.xx shall be maintained for the first three-month

period, with separate subaccounts being established

for six-month periods thereafter. Carrying charges

calculated in accordance with Section 154.305(h) of

the Commission's Regulations shall be charged on the

balances in the subaccounts.