Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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

Original Sheet No. 130 Original Sheet No. 130 : Effective

GENERAL TERMS AND CONDITIONS

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6.11 NOMINATION PRIORITIES

As part of the nomination and transfer nomination

process, if there is more than one supply source nominated to be

delivered to a single Delivery Point or buyer, the nomination or

transfer nomination should identify how and which supply sources

should be cut in the event all nominated deliveries are not or

cannot be made. Similarly, the nomination or transfer nomination

should identify which delivery should be cut in the event gas is

not or cannot be received as nominated (i.e., ranking). Ranking

should be included in the list of data elements. Transportation

service providers should use Service Requester (Shipper) provided

rankings when making reductions during the scheduling process when

this does not conflict with tariff-based rules.

6.12 OPERATIONAL BALANCING

KMIP agrees that, if requested by Shipper, it will

negotiate with an entity that operates the facilities

interconnecting with KMIP at a Receipt Point (Balance Operator) in

a good faith effort to reach an agreement to deal with imbalances

at the Receipt Points specified (which would be a form of a

Predetermined Allocation), subject to the following conditions:

(a) Such agreement must set out a mutually agreeable

procedure for dealing, as between KMIP and Balance Operator, with

any difference between confirmed nominations and actual physical

gas flow caused by operational conditions, so that any such

discrepancy does not affect any Shipper;

(b) The Balance Operator must meet the same

creditworthiness standards as Shipper;

entered into such an agreement which was terminated because of

Balance Operator's failure to perform. Nothing herein is intended

to restrict KMIP's right to terminate in accordance with its terms

any agreement entered into hereunder, including without limitation

the right to terminate for Balance Operator's failure to perform

consistent with its obligations under the agreement.