First time that I have seen this notice on Tansco

-----Original Message-----
From: CustomerNotices, WGPHOU
[mailto:WGPHOU.CustomerNotices@Williams.com]
Sent: Monday, February 25, 2002 11:51 AM
Subject: System Imbalance Notice




February 25, 2002

To: Transcontinental Gas Pipe Line Corporation Customers and 
Shippers 

Re: System Imbalance Notice

Transco has traditionally experienced significant negative 
transportation imbalances (deliveries in excess of receipts) on 
its system when cash out index pricing is significantly lower 
than spot gas pricing.  Based upon current gas prices and 
current index averages, in addition to a significant increase in 
market loads for the balance of the month, it is likely Transco 
will experience significant negative imbalances.

Transco reminds its customers and shippers that, according to 
Section 5.2 of Rate Schedules FT and IT, they "...have the 
responsibility to adjust and maintain a concurrent balance 
between receipts and deliveries...".  Transco expects all parties 
to adhere to this requirement to ensure that there will be no 
loss in Transco's operational flexibility.  

Transco will closely monitor system conditions and, if shippers 
and customers do create significant negative imbalances, Transco 
may be required to initiate restrictive practices at its pooling 
points and disallow make-up transportation.  

If you have any questions, please call Terry Fitch at (713) 215-
3361 or John McGrath at (713) 215-2514.


Terry C. Fitch
Manager
Gas Operations