Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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

Original Sheet No. 230 Original Sheet No. 230 : Effective

GENERAL TERMS AND CONDITIONS

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31.3 ACCOUNTING FOR COSTS AND REVENUES

The allocation of costs to, and the recording of

revenues from service at Negotiated Rate(s) will follow KMIP's

normal practices associated with all of its services under this

Tariff. KMIP will maintain separate records of Negotiated Rate and

Negotiated Rate Formula transactions for each billing period. These

records shall include the volumes transported, the billing

determinants (contract MDQ), the rates charged and the revenue

received associated with such transactions. KMIP will separately

identify such transactions in Statements G, I and J (or their

equivalent) filed in any general rate proceeding. Should KMIP

institute a tariff provision to flow through on a current basis to

its Shippers the impact of certain transportation transactions, the

treatment of revenues from Negotiated Rate(s) or Negotiated Rate

Formula(s) shall be specified in such provision.

31.4 CAPACITY RELEASE REVENUE

KMIP and Shipper may agree hereunder to a Negotiated

Rate or Negotiated Rate Formula which includes payment obligations

or crediting mechanisms in the event of a capacity release which

vary from those set out in Section 14.13 of these General Terms and

Conditions. Nothing in the foregoing sentence, however, shall

authorize KMIP or Shipper to violate the Commission's policy with

respect to the negotiation of terms and conditions of service.