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. 150 Original Sheet No. 150 : Effective

GENERAL TERMS AND CONDITIONS

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(ii) The individual daily closing prices

for the following Month ("spot Month" or "near Month") NYMEX natural

gas contract during the Month in which the imbalance was created, up

to and including the day the "spot Month" contract "goes off the

board."

10.4 OPERATIONAL DATA VS. ACTUALS

In determining the cashout tier applicable under Section

11.3 above, KMIP will utilize the operational data posted on its

Interactive Website as of the end of the Month or the actual flow

volumes, whichever results in a lower cashout tier.

10.5 PRIOR PERIOD ADJUSTMENTS

Any imbalances for a Month that are booked after the

transportation for that Month has been billed will be cashed out at

100% of the AMIP in effect during the Month the imbalance occurred.

10.6 PURCHASE AND SALE OF GAS

KMIP is not providing a supply service under any Rate

Schedule of this Tariff. Without limitation of the foregoing, KMIP

may buy and sell gas to the extent necessary to maintain System

pressure, to implement the cashout procedures under this Section 10

and to perform other functions in connection with providing

transportation service and operating its system. The point of any

such sale shall occur at Receipt Points on a Shipper Agreement.

Such sales shall be authorized pursuant to KMIP's blanket sales

certificate. Nothing herein shall impose on KMIP any obligation to

provide a supply function to any of its Shippers.

10.7 THIRD PARTY BALANCING

At any time during the term of its firm Agreement(s) on

KMIP, a firm Shipper may request that KMIP enter into a Third Party

Balancing Agreement. A Third Party Balancing Agreement is a

contract executed by KMIP, the firm Shipper and one or more third

parties which agree to manage imbalances of that Shipper under

specified firm Agreement(s) on KMIP. KMIP will enter into a Third

Party Balancing Agreement, subject to the following conditions: