Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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

Original Sheet No. 136 Original Sheet No. 136 : Effective

GENERAL TERMS AND CONDITIONS

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(c) In the event that volumes delivered by KMIP under

Applicable Agreements at any Delivery Point are less than the sum

of confirmed nominations at the point on any Day, the delivery

sequence for that Day shall be as follows:

(1) First, confirmed nominations under all

Applicable Agreements shall be deemed delivered on that Day;

provided, however, that volumes deemed delivered for that Day are

subject to adjustment.

(2) Of the volumes nominated but not delivered,

volumes equal to up to the percentage of the confirmed nominations

under step (1) which corresponds to the percentage for the

Balancing Service Charge tier under Section 9 of these General

Terms and Conditions for which no additional charge is assessed

under then prevailing conditions shall be allocated to the point

operator's account on any Day (such allocation absorbs any

allowable balancing service provided without additional charge

under Section 9 of these General Terms and Conditions), but only to

the extent necessary to account for deliveries on that Day. The

point operator's account is available for the allocation of volumes

hereunder on any Day except during a Critical Time or as otherwise

provided in an Operational Flow Order. Moreover, allocations under

this step (2) to a point operator's account shall not be made to

the extent such an allocation would be inconsistent with an

Operational Flow Order nor shall any such allocation be made during

a Critical Time. The cumulative volumes for operator's account

hereunder over any Month may not exceed two percent (2%) of

cumulative confirmed nominations for that Month or any lesser

amount specified in an Operational Flow Order.

The determination related to the prior

sentence shall be made at the end of the Month and any volumes in

excess of the 2% cashed-out. Such cashout shall be implemented

without offset, netting, trading, in accordance with Section 10.3

of these General Terms and Conditions, except that imbalances from

2% to 5% shall be cashed-out in the "5% to 10%" tier.

(3) Volumes under Applicable Agreements equal to

available rights to inject gas to the storage point of a qualified

third party pursuant to a Third Party Balancing Agreement held by

the point operator shall next be deemed injected for that Day on

behalf of the point operator.