Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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

Original Sheet No. 193 Original Sheet No. 193 : Effective

GENERAL TERMS AND CONDITIONS

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(b) A Releasing Shipper shall be billed the

reservation charge associated with the entire amount of released

capacity pursuant to its contract rate, which includes all non-

commodity based charges under KMIP's Tariff for such released

capacity including but not limited to additional direct-bill

charges, with a concurrent conditional credit for payment of the

reservation charge due from the Replacement or Subreplacement

Shipper(s), as applicable, which received the released capacity.

Releasing Shipper shall also be billed a marketing fee, if

applicable, pursuant to the provisions of Section 15 of these

General Terms and Conditions. As to any capacity released by a

Releasing Shipper, the Releasing Shipper shall not be billed or be

responsible for: (1) commodity charges; (2) scheduling charges or

cashouts of imbalances; and (3) add-on charges and surcharges

applicable to KMIP's commodity rates under KMIP's Tariff such as

ACA, and Fuel Gas and Unaccounted For Gas, if applicable, which are

incurred by a Replacement Shipper or Subreplacement Shipper which

received the released capacity.

does not make payment to KMIP of the reservation portion of the

charges due as set forth in its Released Firm Transportation

Agreement, KMIP shall bill the Releasing Shipper(s) from whom such

Replacement or Subreplacement Shipper received the capacity for the

amount(s) due, including all applicable late charges authorized by

KMIP's Tariff, and such amount shall be paid by such Releasing

Shipper within ten (10) days of the receipt of such billing, or

interest shall continue to accrue. In the event that the Replacement

or Subreplacement Shipper has not paid such amount(s) due by the end

of such ten (10) day period, then: (1) the Releasing Shipper has

the right to recall the capacity; and (2) KMIP's rights against the

delinquent Replacement/Subreplacement Shipper shall be subrogated to

the related rights of the Releasing Shipper. KMIP shall make a

reasonable effort to collect from the Replacement/Subreplacement

Shipper the amount(s) due. Such reasonable effort shall not include

incurring costs from outside attorneys, collection agents or other

third parties.

(d) All payments received from a Replacement or

Subreplacement Shipper shall first be applied to reservation

charges, then to late charges on reservation charges, then to

scheduling charges and cashout amounts, then to late charges not on

the reservation charges, and then last to commodity-based charges.