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. 228 Original Sheet No. 228 : Effective

GENERAL TERMS AND CONDITIONS

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31. NEGOTIATED RATES

31.1 PRECONDITIONS TO NEGOTIATED RATES

Rates to be charged by KMIP for service to any Shipper

under Rate Schedule FTS or ITS may deviate in either form or level

or both from the applicable minimum or maximum rate level in this

Tariff, subject to the following provisions:

(a) KMIP and Shipper have executed a valid Agreement

containing therein or in a related agreement a specific mutual

understanding that Negotiated Rate(s) or a Negotiated Rate Formula

will apply to service for that Shipper;

(b) At the time of execution of the Agreement (or the

amendment to an Agreement), which first provides for the

applicability to Shipper of the Negotiated Rate(s) or Negotiated

Rate Formula, service was available pursuant to the terms and

conditions (not modified by this Section 31) of Rate Schedule FTS or

ITS of this Tariff, as applicable; and

(c) No later than the Business Day on which KMIP

commences service at such Negotiated Rate(s) or Negotiated Rate

Formula (or if the Day on which KMIP commences service is not a

Business Day, then no later than the next Business Day after KMIP

commences service), KMIP will file a tariff sheet advising the

Commission of such Negotiated Rate or Negotiated Rate Formula,

stating the name of Shipper, the type of service, the Receipt and

Delivery Point(s) applicable to the service, the volume of the gas

to be transported, any other charges, and specifying either: (i)

the specific Negotiated Rate included in such Agreement; or (ii) the

Negotiated Rate Formula included in such Agreement with sufficient

specificity such that the rate in effect from time to time can be

readily calculated. The tariff sheet must also incorporate a

statement that the Agreement does not deviate from the form of

Service Agreement in any material respect or, alternatively, KMIP

may file the contract.