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. 229 Original Sheet No. 229 : Effective

GENERAL TERMS AND CONDITIONS

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31.2 CAPACITY ALLOCATION

To the extent the revenue level pursuant to the

Negotiated Rate(s) or Negotiated Rate Formula provided for in

Section 33.1 above should exceed the revenue level at the Recourse

Rate, the Shipper paying such Negotiated Rate(s) or rate(s) under a

Negotiated Rate Formula shall be treated, for all capacity award and

allocation purposes as if the rate bid or paid had been equal to the

Recourse Rate. Any Shipper, existing or new, paying the applicable

Recourse Rate has the same right to capacity as a Shipper paying or

willing to pay a Negotiated Rate or the rate under a Negotiated Rate

Formula which is equal to or higher than the corresponding Recourse

Rate. If the Negotiated Rate or rate under a Negotiated Rate Formula

is equal to or higher than the corresponding Recourse Rate, the

Recourse Rate rather than the Negotiated Rate or Negotiated Rate

Formula will be used as the price cap for release capacity pursuant

to Section 14.8 of these General Terms and Conditions and for the

Right of First Refusal pursuant to Section 16.2 of these General

Terms and Conditions. Where the Negotiated Rate(s) or rate(s) under

a Negotiated Rate Formula results in revenue which is greater than

the Recourse Rate during certain portions of the relevant evaluation

period but less than the revenue at the Recourse Rate during other

portions of the relevant evaluation period (but the revenue pursuant

to the Negotiated Rate(s) or rate(s) under a Negotiated Rate Formula

equals or exceeds that which would be generated at the Recourse Rate

for the entire evaluation period), the value of bids and requests at

the Negotiated Rate(s) or rate(s) under a Negotiated Rate Formula

shall be evaluated as though the Recourse Rate applied under such

bid or request for the entire evaluation period. Where the

Negotiated Rate(s) or rate(s) under the Negotiated Rate Formula

result in revenue which is less than revenue at the Recourse Rate

over the relevant evaluation period, the value of the bids or

requests at the Negotiated Rate(s) or rate(s) under the Negotiated

Rate Formula shall be evaluated based on such lower revenue and

shall be afforded a correspondingly lower priority than bids or

requests at the Recourse Rate.