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. 203 Original Sheet No. 203 : Effective

GENERAL TERMS AND CONDITIONS

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16. PRE-GRANTED ABANDONMENT, CONTRACT ROLLOVERS AND RIGHT OF FIRST REFUSAL

16.1 GENERAL

Subject to Section 16.3, service performed by KMIP under

Part 284 of the Commission's Regulations shall expire, and shall be

automatically abandoned, upon contract termination under:

(a) any FTS transportation Agreement with a primary

term of less than one (1) Year; and (b) any ITS transportation

Agreement regardless of term. Service under any FTS transportation

Agreement with a term of one (1) Year or greater shall expire, and

shall be automatically abandoned, on contract termination unless

service is continued pursuant to Sections 16.2 or 16.3.

16.2 RIGHT OF FIRST REFUSAL

(a) Any Shipper under an FTS Agreement with a term of

one (1) Year or greater shall have the right to continue receiving

service after the expiration of its existing Agreement if, pursuant

to the Right of First Refusal procedures set forth in this Section

16.2, it matches the price and term offered for such service by any

other bidder; provided, however, that (irrespective of the price

offered by the existing Shipper or any bidder) KMIP shall not be

required to provide service at a discount from its applicable

maximum rate unless it otherwise agrees; and, provided further that

if a bid is submitted for a Negotiated Rate or Negotiated Rate

Formula under Section 31 of these General Terms and Conditions, the

existing Shipper need match only the value of that bid utilizing the

Recourse Rate in lieu of the Negotiated Rate or Negotiated Rate

Formula consistent with said Section 31.

(b) To exercise the Right of First Refusal, Shipper

must provide KMIP with notice of its intent to do so in a form

specified by KMIP and must submit such notice at least six (6)

Months prior to the expiration of the existing Agreement. KMIP

shall advise Shipper in writing of the date by which such notice

must be submitted at least three (3) Months prior to the last day on

which such notice can be made on a timely basis. Such notice must

specify a desired term of service and the desired MDQ in total and

at each Receipt and Delivery Point. If the requested MDQ is greater

than the existing MDQ in total and at each Receipt and Delivery

Point, any such increase shall be treated as a request for new

service under the applicable Rate Schedule and only the