Western Gas Interstate Company

Third Revised Volume No. 1

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Effective Date: 06/01/1993, Docket: RS92- 53-003, Status: Effective

Revised Original Sheet No. 185 Revised Original Sheet No. 185 : Superseded







(e) Incidental Charges: Shipper shall reimburse Western

for any incidental charges incurred by Western in

providing this service. Such charges may include

filing fees and, subject to agreement and approval of

Shipper, costs of construction or acquisition of new

facilities necessary to render service or such other

charges as may be authorized by any regulatory agency

having jurisdiction.


5.4 For purposes of Section 5.3(e), the term "new facilities"

is defined as facilities required for Western to either

receive or deliver gas under this Rate Schedule and which

facilities are not existing on the date Shipper executes an

IT-N Service Agreement for service hereunder. Section

5.3(e) pertains to facilities at receipt and delivery

points only. It is not intended to limit which party may

own, operate, install, or pay for facilities upstream of a

receipt point or downstream of a delivery point.


(a) New facilities may be installed by either Western or

Shipper as follows:


(1) Western will install, at its own expense, any new

facilities which, based on Western's estimates,

will generate annual revenues equal to or greater

than the annual cost of service associated with

such facilities. Revenues will be based on

projected annual incremental volumes of

throughput and peak usage for each year for the

depreciable life of the facilities to be built or

for the number of years under the initial term of

the operable service agreement, whichever is

shorter, and the currently effective rate for the

service contemplated.


(2) In calculating the incremental cost of service,

Western shall utilize the methodologies for

calculating cost of service which underlies its

currently effective transportation rates.