Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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

Original Sheet No. 144 Original Sheet No. 144 : Effective

GENERAL TERMS AND CONDITIONS

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9.6 BILLING

(a) In the event KMIP does not have all actual

information by the time the billings are to be sent, KMIP may bill

Balancing Service Charges applicable to non-Critical Times based on

reasonable estimates. Such non-Critical Time Balancing Service

Charges will be assessed or revised as a result of the receipt or

revision of actual information.

(b) During a Critical Time, KMIP and Shippers shall

rely on KMIP's operational data posted on KMIP's Interactive

Website to determine whether a Critical Time Balancing Service

Charge is applicable; provided, however, if a Shipper is convinced

that KMIP's operational data is erroneous and promptly (by the end

of the next Business Day following the posting) communicates the

error to KMIP, KMIP and the Shipper shall work to resolve the

discrepancy and determine the appropriate measure of the Shipper's

compliance with applicable tolerances.

General Terms and Conditions, Balancing Service Charges shall be

applied to point operator's account as though point operator were a

Shipper, with percentage variances measured in relationship to

total confirmed nominations and delivery rights under Applicable

Agreements at the Delivery Point.

9.7 PASS BACK OF PENALTY REVENUE

All amounts collected by KMIP for penalties, commencing

with the initial in-service date of KMIP, shall be determined for

each annual period ending December 31 and distributed, through a

credit to current billings wherever feasible, within ninety (90)

days after each December 31, with the first such determination and

distribution being made within ninety (90) days after the end of

the partial annual period commencing with the initial in-service

date of KMIP and ending the ensuing December 31. For purposes of

this Section 9.7, penalties shall include: Unauthorized Overrun

Charges, Balancing Service Charges, charges for failure to comply

with an Operational Flow Order (including during a Critical Time)

and charges for cashout of imbalances. Such distribution shall be

made as follows: