Central Kentucky Transmission Company

Original Volume No. 1

Effective Date: 05/01/2006, Docket: CP05- 48-002, Status: Effective

Original Sheet No. 84 Original Sheet No. 84 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(iii) Upstream Service Requester did not have the gas or

submit the nomination;

(iv) Downstream Confirming Party did not conduct the

confirmation;

(v) Downstream Service Requester did not have the market

or submit the nomination.

(e) If only partial confirmations are received by Transporter from

the upstream and downstream entities delivering or receiving gas on behalf

of Shipper, Shipper's nominations shall be reduced in accordance with the

priorities set forth on a priority reduction list to be furnished by

Shipper with the nomination. If Shipper fails to provide a priority

reduction list, Transporter may reduce the Shipper's nominations on a pro-

rata basis.

(f) If after Shipper's gas is confirmed, Transporter is notified that

Shipper's gas is not available, then Transporter may cease deliveries.

(g) The Explicit Confirmation process requires that the Confirming

Party and Transporter respond to a Request for Confirmation or initiate an

unsolicited Confirmation Response. Absent mutual agreement to the

contrary, Explicit Confirmation is the default methodology.

(h) When a previously confirmed and scheduled quantity is altered,

notification of such alteration should be provided to all of the parties

that are affected. Applicable notification(s) of such alterations should

be provided to the affected parties reasonably proximate in time to the

time during which the event causing the alteration was acted upon by

Transporter.