Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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

Original Sheet No. 133 Original Sheet No. 133 : Effective

GENERAL TERMS AND CONDITIONS

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8. DETERMINATION OF DAILY DELIVERIES

8.1 PREDETERMINED ALLOCATIONS

In accounting for the volumes delivered by KMIP, in

circumstances where multiple services are provided at the Delivery

Point set out in Section 1.8 of these General Terms and

Conditions, the sequence of volumes delivered shall be determined

by a predetermined allocation agreement (PDA) between KMIP and the

operator of the facilities immediately downstream of the point at

which KMIP delivers gas. The upstream or downstream party

providing the point confirmation should submit the PDA to the

allocating party after or during confirmation and before the start

of the Day. In the absence of such an agreement, Sections 8.2 and

8.3 shall control. Any new or proposed change to the methodology

should be sent to KMIP before the start of the Day on which the

methodology is to be effective. KMIP shall confirm receipt of the

methodology within fifteen (15) minutes via KMIP's Interactive

Website if received via KMIP's Interactive Website or via EDI if

received via EDI. KMIP's acceptance is contingent on KMIP being

able to administer the allocation submitted by the Allocator.

Allocation methodology types upon which two parties may agree are:

ranked, pro rata, percentages, swing and operator provided value.

Other examples of allocation methods that can be used are

combinations of methodology types. Different methods may be

submitted for overages and underages.

8.2 DELIVERY SEQUENCE

Unless otherwise agreed, gas at any Delivery Point shall

be deemed to have been delivered in the following sequence:

(a) Volumes scheduled under FTS Agreements consistent

with confirmed nominations and within MDQ;

(b) Volumes scheduled under ITS Agreements consistent

with confirmed nominations and within MDQ;

nominations;