GENERAL TERMS AND CONDITIONS
                                           (Continued)
   
   
        17.    TYPES OF DISCOUNTS
   
               Under its Rate Schedules Seller is permitted to discount its rates between its
               Maximum and Minimum Rates on a basis that is not unduly discriminatory.  From
               time to time Customer and Seller may agree in writing on a level of discount of
               the otherwise applicable rates and charges in addition to a basic discount from
               the stated Maximum Rates.  For example, Seller may provide a specific
               discounted rate:
   
               (i)    to certain specified quantities under the Service Agreement,
               (ii)   if specified quantity levels are actually achieved or with respect to
                      quantities below a specified level,
               (iii)  during a specified time period,
               (iv)   to points of injection, points of withdrawal, or defined geographical
                      areas, or
               (v)    in a specified relationship to the quantities actually injected or
                      withdrawn (i.e., that the rates shall be adjusted in a specified
                      relationship to quantities actually injected or withdrawn).
   
               In all circumstances the discounted rate shall be between the Maximum Rate and
               the Minimum Rate applicable to the service provided.
   
               Such forms of discounts shall not be considered a material deviation from Seller's
               pro forma Service Agreement as a result of such discount and Seller shall not be
               required to file such Agreement with the Commission as a non-conforming contract
               because of such discount.  Seller shall, however, file any required reports
               related to such discounts pursuant to the Commission's regulations.
   
               In addition, the discount agreement may include a provision that if one rate
               component which was at or below the applicable Maximum Rate at the time the
               discount agreement was executed subsequently exceeds the applicable Maximum
               Rate due to a change in Seller's Maximum Rates so that such rate component must
               be adjusted downward to equal the new applicable Maximum Rate, then other rate
               components may be adjusted upward to achieve the agreed overall rate, as long
               as none of the resulting rate components exceed the Maximum Rate applicable to
               that rate component.  Such changes to rate components shall be applied revised
               Tariff sheet rates.  However, nothing contained herein shall be construed to
               alter a refund obligation under applicable law for any period during which
               rates that had been charged under a discount agreement exceeded rates, which
               ultimately are found to be just and reasonable.