ANNUAL CHARGE ADJUSTMENT PROVISION
   
1. Purpose - This Section  establishes an  Annual Charge  Adjustment Provision
("ACA") which  will permit MIGC to recover from its Customers and Shippers the
annual charges  assessed to  MIGC by  the Commission  under Part  382  of  the
Commission's Regulations.   Because MIGC is able to recover its annual charges
pursuant  to   this  ACA   provision,   and   in   accordance   with   Section
154.38(d)(6)(ii)(A) of  the Commission's  Regulations, it is MIGC's intent not
to recover  any annual  charges in  a general rate case under Section 4 of the
Natural Gas Act.
   
2. Applicability - The ACA  is applicable  to each  rate schedule contained in
Second Revised Volume No. 1 of the FERC Gas Tariff for which system wide rates
and charges  are charged  and reflected  on Sheet  No. 4  hereof, or for which
rates and  charges are  assessed in  accordance with  the rate  provisions  of
individually certificated rate schedules as reflected on Sheet No. 4 hereof.
   
3. Adjustment Date - The Adjustment Date shall be October 1 of each year or as
directed by  an order  of the  Commission.  On the Adjustment Date, MIGC shall
increase or  decrease the  ACA unit  charge to  each of  the  applicable  rate
schedules as  authorized by the Commission to be recovered by MIGC.  For those
rate schedules  with a  two-part rate, the ACA unit charge shall only apply to
the commodity component of such rate.
   
4. Current Annual  Charge Rate  Adjustment - The Current  Annual  Charge  Rate
Adjustment shall  be the  unit amount, adjusted as necessary for heating value
and pressure base, which the Federal Energy Regulatory Commission orders to be
effective for the fiscal year commencing on the Effective Date of Adjustment.
   
5. Effective Date - The  ACA unit  charge shall  become effective October 1 of
each year or as directed by an order of the Commission if:
   
   (a) MIGC has  paid the  applicable annual charge in compliance with Section
382.103 of the Commission's Regulations; and
   
   (b) the ACA unit charge is not subject to suspension or refund obligation.