Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 02/01/1993, Docket: RS92- 87-003, Status: Effective

1st Revised Sheet No. 11 1st Revised Sheet No. 11 : Effective

Superseding: Original Sheet No. 11

RATE SCHEDULE FTS-1

Firm Transportation Service

(continued)

6. INSTALLATION OF FACILITITES

(a) Transporter shall have no obligation to modify its existing

facilities or construct new facilities in order to receive or deliver

Shipper's gas under this Rate Schedule.

(b) Subject to the conditions of Paragraph (d) below and upon execution

of an agreement mutually agreeable to Shipper and Transporter,

Transporter will construct or modify those facilities, reasonably

necessary to provide transportation services to Shipper hereunder,

that interconnect with facilities which either cross or are adjacent

to Transporter's existing facilities, if Shipper reimburses

Transporter for the cost of said facilities.

not unduly discriminatory basis, Transporter may pay for all or part

of the cost incurred by Transporter for the modification or

construction of taps, valves, measurement equipment, laterals, or

other facilities required at receipt or delivery point(s) to

effectuate the receipt or delivery of natural gas hereunder, when the

construction or modification of such facilities is economically

beneficial to Transporter.

For the purposes of determining whether a gas supply project is

economically beneficial to Transporter, Transporter will evaluate

each prospective project, on a not unduly discriminatory basis, based

upon the amount of the reserves and deliverability characteristics of

the gas supply to be attached, the cost of the facilities to be

constructed by Transporter, the incremental operating and maintenance

expenses which would be attributable to the facilities, and the

revenues which Transporter estimates will be generated as a result of

constructing and/or modifying such facilities.

For the purposes of determining whether a project to deliver gas is

economically beneficial to Transporter, Transporter will evaluate

each prospective project, on a not unduly discriminatory basis, based

upon the cost of the facilities to be constructed by Transporter, the

incremental operating and maintenance expenses which would be

attributable to the facilities, and the revenues which Transporter

estimates will be generated as a result of constructing and/or

modifying such facilities.