Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 01/01/2003, Docket: RP00-490-002, Status: Effective

Fourth Revised Sheet No. 9A Fourth Revised Sheet No. 9A : Effective

Superseding: Third Revised Sheet No. 9A

RATE SCHEDULE FTS-1

Firm Transportation Service

(continued)

3.4 Overrun Charge: On any day that gas scheduled from Shipper for

transportation is in excess of the MAXDTQ (exclusive of

Transport Fuel), then the Transport Charge applicable to such

overrun gas shall be the Maximum Transport Charge set forth on

the currently effective Rate Sheets for Rate Schedule ITS-1.

3.5 Discounted Rates: Transporter may from time to time and at any

time at its sole discretion and expense, charge any individual

Shipper for transportation service under Rate Schedule FTS-1, a

Reservation Charge, a Transport Charge, or an Overrun Charge

which is lower than the stated rates set forth in Shipper's

FTS-1 Service Agreement or on the currently effective Rate

Sheets; provided, however, that such rate charged may not be

less than the applicable Minimum Rate set forth on the currently

effective Rate Sheets for Rate Schedules FTS-1 and ITS-1. The discounted

rate is only applicable to those quantities transported at specified

receipt and delivery points. A shipper may request that the discounted

rate be extended to alternate receipt or delivery points under

its existing agreements, capacity segment contracts under Section 33, or

released capacity under Section 30. There is a rebuttal presumption

that a shipper holding a discount at a point under it's primary contractual

capacity path and direction of flow will receive a discounted rate at alternate

receipt or delivery points within the same capacity path and direction of

flow if Transporter has granted discounts to other similarly situated

shippers at such alternate receipt or delivery points utilizing the same

capacity path and direction of flow. If a discounted rate is applicable,

shipper will pay the higher of its contracted discount rate or the discount

rate of such similarly situated shipper.

A shipper seeking to extend a discount to alternate points may submit a

request to Transporter prior to any scheduling cycle. Transporter shall

act on such requests within two hours during the business day. For overnight

requests to retain discounts received after 4:00 pm, Transporter shall act

no later than 8:30 am CCT the next business day. Transporter shall not be

obligated to process discount requests on the weekend.

Transporter shall file with the Commission any and all reports as

required by the Commission's Regulations setting forth the applicable

charge, the individual Shipper(s) affected, the volume transported and

any other information which may be required.

3.6 Negotiated Rates: Transporter and Shipper may mutually agree to

rates for services that may be below the minimum rates or above

the maximum rates set forth on the currently effective Rate

Sheets for Rate Schedule FTS-1. For each Negotiated Rate transaction,

Transporter shall file, at least one day prior to the commencement of

service, tariff sheets which include the Shipper, the rate or formula

used to calculate the rate, the term, the volume, and the receipt and

delivery points applicable to the service.