Transwestern Pipeline Company

Second Revised Volume No. 1

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

Second Revised Sheet No. 20D Second Revised Sheet No. 20D : Effective

Superseding: First Revised Sheet No. 20D

RATE SCHEDULE LFT

Limited 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 LFT, a Reservation Charge, a Transport Charge, or an Overrun

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