Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

Effective Date: 12/01/2007, Docket: RP08- 34-000, Status: Effective

Original Sheet No. 104 Original Sheet No. 104 : Effective

GENERAL TERMS AND CONDITIONS

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1.22 NEGOTIATED RATE FORMULA

The term "Negotiated Rate Formula" shall mean a rate formula

provision under which KMIP and Shipper have agreed will be applied

to service under Rate Schedule FTS or ITS which results in a rate

where, for all or a portion of the contract term, one or more of the

individual components of such rate exceeds or may exceed the

applicable maximum rate or is less than or may be less than the

applicable minimum rate. Any rate formula which deviates from the

Straight Fixed Variable rate design shall be considered a Negotiated

Rate Formula unless it constitutes a discount. Any Agreement entered

into which provides for a rate under Rate Schedule FTS or ITS other

than the applicable maximum rate shall contain a provision setting

out the mutual agreement of the parties, consistent with Commission

policy, as to whether the pricing terms represent a discounted rate

or a rate pursuant to a Negotiated Rate Formula.

1.23 NOMINATION

"Nomination" shall mean the written requests for

transportation submitted pursuant to Section 6 of these General

Terms and Conditions.

1.24 OPERATIONAL BALANCING AGREEMENT ("OBA")

An "OBA" is a contract between two parties which

specifies the procedures to manage operating variances at an

interconnect.

1.25 OVERRUN GAS

"Overrun Gas" shall mean those volumes of gas tendered

for transportation by Shipper on any Day in excess of its currently

effective Contract Demand or MDQ, or in the case of service under

Rate Schedule ITS, in excess of Shipper's MDQ or nominations, to the

extent such gas is scheduled under Section 6 of these General Terms

and Conditions.