Transwestern Pipeline Company

Second Revised Volume No. 1

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

2nd Revised Sheet No. 78 2nd Revised Sheet No. 78 : Effective

Superseding: 1st Revised Sheet No. 78

GENERAL TERMS AND CONDITIONS

(continued)

last allowed by the Commission during the previous three year

period. If there has been no such rate of return allowed

during the previous three year period, then, in the absence of

evidence submitted to the contrary, the return utilized shall

be the present interest rate used for computing refunds as

specified in Section 154.67 of the Commission's Regulations

under the Natural Gas Act.

20.2 Procedure for Filing

Rate changes under this Section 20 shall be computed and filed not

more frequently than semi-annually.

Any filing made hereunder to increase Transporter's rates shall meet

the notice requirements of Section 154.22 of the Regulations and

shall be made a least thirty (30) days prior to the date on which any

change(s) in its existing rates is to become effective.

Simultaneously with such filing, Transporter shall furnish the

Commission, Shippers, and interested State Commissions, a report

containing detailed computations which clearly show the derivation of

the proposed R&D Adjustment. The effect upon transportation rates

shall be determined by computing the unit change (either increase or

decrease) based upon sales transportation quantities for the twelve

month period ending three months prior to the effective date of R&D

Adjustment.

Filings made under this Section 20 shall include a statement as to

the anticipated scope and objective of the R&D and the relationship

of such objective to the service for which the R&D Adjustment is to

apply. Each R&D Adjustment shall become effective on the proposed

effective date without suspension provided that any rate increase

shall be subject to reduction and refund of any portion found after

hearing to be unjustified by a final and non-appealable Commission

order.