EXHIBIT 12

                  THE WILLIAMS COMPANIES, INC. AND SUBSIDIARIES
           COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
                    AND PREFERRED STOCK DIVIDEND REQUIREMENTS
                              (Dollars in millions)




                                               Nine Months
                                                  Ended                          Years Ended December 31,
                                              September 30,  ---------------------------------------------------------------
                                                  2001          2000          1999          1998         1997         1996
                                              ------------   ---------     ---------     ---------    ---------    ---------
                                                                                                 
Earnings:
   Income from continuing operations
      before income taxes and
      extraordinary gain (loss)                 $ 1,593.4    $ 1,595.3     $   585.7     $   403.7    $   703.0    $   773.3
   Add:
      Interest expense--net                         521.8        659.1         555.7         499.6        442.2        409.3
      Rental expense representative
         of interest factor                          24.0         27.6          28.2          24.1         24.4         27.5
      Interest accrued--50% owned
         companies                                    7.4          8.7           7.5           6.2           --          1.3
      Minority interest in income
         and preferred returns of
          consolidated subsidiaries                  65.0         51.4          35.8           6.3          3.8          1.4
      Equity losses in less than 50%
         owned companies                             19.9         16.5          13.0            --           --           --
      Other                                           4.2         (8.3)         (3.6)          7.6          3.1          5.7
                                                ---------    ---------     ---------     ---------    ---------    ---------

         Total earnings as adjusted
            plus fixed charges                  $ 2,235.7    $ 2,350.3     $ 1,222.3     $   947.5    $ 1,176.5    $ 1,218.5
                                                =========    =========     =========     =========    =========    =========

Combined fixed charges and preferred stock
  dividend requirements:
      Interest expense--net                     $   521.8        659.1     $   555.7     $   499.6    $   442.2    $   409.3
      Capitalized interest                           33.3         49.4          34.6          13.8         15.5          8.2
      Rental expense representative
         of interest factor                          24.0         27.6          28.2          24.1         24.4         27.5
      Pretax effect of dividends on
         preferred stock of the Company                --           --           5.1          12.4         16.1         16.2
      Pretax effect of dividends on
         preferred stock and other preferred
           returns of subsidiaries                   49.0         44.2          26.7            --           --           --
      Interest accrued--50% owned company             7.4          8.7           7.5           6.2           --          1.3
                                                ---------    ---------     ---------     ---------    ---------    ---------

         Combined fixed charges and
            preferred stock dividend
               requirements                     $   635.5    $   789.0     $   657.8     $   556.1    $   498.2    $   462.5
                                                =========    =========     =========     =========    =========    =========

Ratio of earnings to combined
    fixed charges and preferred
    stock dividend requirements                      3.52         2.98          1.86          1.70         2.36         2.63
                                                =========    =========     =========     =========    =========    =========