GENERAL TERMS AND CONDITIONS
                                  (Continued)
   
   
  18. BILLING ADJUSTMENT FOR RATE SCHEDULE IS WITHDRAWAL PENALTY
   
      18.1  Billing Adjustment.  A billing adjustment shall be made to non-
            offending Customers bills crediting all revenues from Rate
            Schedule IS Withdrawal Penalties collected by Seller, net of
            costs. All such revenue shall be generated from the sale of
            Working Storage Gas retained by Seller ("Penalty Gas").  A pro
            rata allocation of such revenue will be credited to each non-
            offending Customer, and will appear on the invoice for the next
            Months business following actual receipt by Seller of such
            revenues.  Seller shall have 90 Days from the end of the Month,
            in which such Penalty Gas was retained, to sell the Penalty Gas.
            The Penalty Gas shall be sold as near as practical to the market
            rate existing at the time the Penalty Gas is sold.  If sale of
            Penalty Gas is made to an affiliate of Seller, Seller shall sell
            such Penalty Gas at no less than the spot market price on the
            Day of such sale.
   
      18.2  Allocation Base. Customers will receive a pro rata allocation
            of net penalty revenue, based upon the following allocation
            base:
   
            (a)  Non-offending Rate Schedule FS Customers:  The Maximum
                 Storage Quantity such Customer had a right to store in
                 the Month Withdrawal Penalty invoked; and
   
            (b)  Non-offending Rate Schedule IS Customers:  The Average
                 Monthly Storage Volume the Customer stored in the Month
                 Withdrawal Penalty invoked.
   
      18.3  Monthly Credit. Each Customer will receive a Monthly Credit
            based upon the formula
   
                           X (Y / Z), where:
    
            X = Total net Penalties collected by Seller in a Month
            Y = The Customers allocation base derived in accordance with
                Section 18.2, above; and
            Z = The Sum of all of Customers allocation bases derived in 
                accordance with Section 18.2, above.