*Transwestern Pipeline Company*

*Second Revised Volume No. 1*

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Effective Date: 11/14/1995, Docket: RP95-454-001, Status: Effective

**6th Revised Sheet No. 91 **6th Revised Sheet No. 91 : Superseded

Superseding: 5th Revised Sheet No. 91

GENERAL TERMS AND CONDITIONS

(continued)

a.TCR Surcharge B Adjustment: Seller shall calculate a new TCR Surcharge B for

each twelve (12) month period with the exception of the third Interest Rate

Adjustment Filing which will be applicable for a four (4) month period. The

amount to be collected is the sum of (1) the Amortization Amounts for such

period, (2) the difference between the estimated interest collected for the

prior twelve (12) month period and the actual interest applicable during

such period as calculated pursuant to 18 CFR 154.67(c)(2)(iii)(A), and (3)

estimated interest for the upcoming twelve (12) month period with the

exception of the third Interest Rate Adjustment Filing which will be

applicable for a four (4) month period. Such estimated interest shall be

equal to the currently effective interest rate pursuant to 18 CFR 154.67

(c)(2)(iii)(A) based upon a thirteen (13) month average balance of all

unamortized amounts through March 31, 1992, with the exception of the third

Interest Rate Adjustment Filing in which estimated interest will be based

upon a five (5) month average balance of all unamortized amounts through

March 31, 1992. The volumes used shall be the volumes underlying the

currently effective rates. Buyer shall be charged the applicable TCR

Surcharge B as set forth on the currently effective Rate Sheets of Volume

No. 1 of Seller's FERC Gas Tariff multiplied by the quantity of

gas actually delivered during the billing month.

b.TCR Surcharge C Adjustment: Transporter shall calculate a new TCR Surcharge C

for each twelve (12) month period. The amount to be collected is the sum of

(1) the Amortization Amounts for such period, (2) the difference between the

estimated interest collected for the prior twelve (12) month period and the

actual interest applicable during such period as calculated pursuant to 18

CFR 154.67(c)(2)(iii)(A), and (3) estimated interest for the upcoming period.

Such estimated interest shall be equal to the currently effective interest

rate pursuant to 18 CFR 154.67 (c)(2)(iii)(A) based upon a thirteen (13)

month average balance of all unamortized amounts through October 31, 1996.

The volumes used shall be the volumes underlying the currently effective

rates. Shipper shall be charged the applicable TCR Surcharge C as set forth

on the currently effective Rate Sheets of Volume No. 1 of Transporter's FERC

Gas Tariff multiplied by the quantity of gas actually delivered during the

billing month.

25.7 TCR Surcharge B True-up Mechanism: Within sixty (60) days after

termination of the amortization period for TCR Surcharge B, Seller shall,

for the TCR Surcharge B amortization period: (1) determine the actual

revenues recovered and (2) determine the difference, if any, between such

actual revenues recovered and the filed total amount to be recovered

through TCR Surcharge B. In the event such calculations reflect that an

overrecovery of the TCR Surcharge B amount occurred, Seller shall: (1)

divide the filed total amount to be recovered through TCR Surcharge B by

(2) the sum of the products of: a) theaverage miles for each zone

multiplied by b) the actual throughput volumes for each such zone on

Seller's system, in order to calculate a "Required TCR Surcharge B" for

each such zone, (3) determine which Buyers paid a TCR Surcharge B which

exceeds the applicable Required TCR Surcharge B, and (4) refund the

difference to each such Buyer paying a TCR Surcharge B rate which exceeded

the applicable Required TCR Surcharge B rate. In the event Seller's

calculations reflect that an under-recovery of the TCR Surcharge B amount

occurred, Seller shall, for the TCR Surcharge