Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

Effective Date: 12/28/1999, Docket: GT00- 19-000, Status: Effective

Original Sheet No. 21 Original Sheet No. 21 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

Unpaid and Disputed Bills. If an invoice is in

dispute, Shipper shall pay portion not in dispute

and provide documentation identifying basis for the

dispute. Should Shipper fail to pay part or all of

the amount of any such bill, interest thereon shall

accrue at an average prime interest rate computed

in a manner consistent with section 154.501(d) of

the FERC's Regulations from the DUE DATE until date

of receipt of payment by transporter. If such

failure to pay continues 30 days after payment is

due, Transporter, in addition to any other remedy

it may have, after Transporter provides Shipper

with 20 days prior written notice may suspend

further service to Shipper until such amount is

paid; provided however, that if Shipper in good

faith disputes in writing the amount of any such

bill or parts thereof and pays to Transporter such

amounts as it concedes to be correct, and at any

time thereafter within 30 days of the demand made

by Transporter shall furnish a good and sufficient

surety bond guaranteeing payment to Transporter of

the amount ultimately found due upon such bills

after a final determination, which may be either by

agreement or judgment of the courts as may be the

case, then Transporter shall not be entitled to

suspend further service unless and until default be

made in the condition of such bond. If resolution

of the dispute is in favor of Shipper and the

Shipper furnished a surety bond and any

interest assessed instead of paying the disputed

amount, then the Transporter shall reimburse

Shipper for the cost of securing the surety bond

and any interest assessed. No payment by Shipper

or the amount of a disputed bill shall prejudice

the right of Shipper to claim an adjustment of the

disputed bill.

10.2 Any payments received shall first be applied to

accrued interest, then to additional charges due,

then to the previously outstanding principal due,

and lastly, to the most current principal due.