Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 09/01/1999, Docket: RP99-456-000, Status: Effective

Original Sheet No. 20B Original Sheet No. 20B : Effective

RATE SCHEDULE LFT

Limited Firm Transportation Service

(continued)

3. RATE

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The applicable rates for the purpose of computing charges under this Rate Schedule are set

forth in the currently effective Rate Sheets of this Tariff and are incorporated herein.

For all natural gas delivered to Shipper each month under this Rate Schedule, Shipper shall

pay Transporter each month the sum of the applicable Reservation Charge, Transport Charge

and Overrun Charge as set forth in Sections 3.1, 3.2, 3.3, 3.4, 3.5, and 3.6.

3.1 (a) Reservation Charge: The applicable Reservation Charge (plus any applicable

surcharges) multiplied by the Monthly Demand Billing Units or MAXDTQ related to the

Primary Receipt and Delivery Points as set forth in Shipper's currently effective

applicable LFT Service Agreement, times the difference between the number of days in

the billing month and the number of Limited Days. Additionally, for each Limited Day

on which any quantity of gas is transported, the Reservation Charge shall be the

applicable Reservation Charge (plus any applicable surcharges) multiplied by the

quantity of gas actually transported.

(b) Additional Reservation Charge for Alternate Point(s): If a Shipper nominates and

transports using Alternate Receipt Point(s) or Alternate Delivery Point(s) that are

outside the Shipper's Primary Path, then Shipper will pay an additional reservation

charge, not to exceed the maximum applicable tariff rate, as negotiated between

Shipper and Transporter, applicable to such service outside the Primary Path. Such

rate will apply on a daily basis for as long as any alternate point outside the

Primary Path is utilized.

3.2 (a) Except as provided in Paragraph 3.2(c), the Reservation Charge that Shipper pays to

Transporter under this Rate Schedule shall be reduced at Shipper's election for any

failure by Transporter to deliver the quantities of gas that have been nominated and

confirmed in accordance with Section 22 of the General Terms and Conditions of this

Tariff (up to the aggregate MAXDTQ), less Transport Fuel, during the calendar months

of December, January, February, July, and August. The reduction shall be calculated

based upon the ratio of (i) the volume of gas that had been nominated and confirmed,

less Transport Fuel, but not delivered during the month to (ii) the total volumes of

gas nominated and confirmed during the month, less Transport Fuel, times (iii) the

total Reservation Charge owed Transporter for that month.