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. 23 Original Sheet No. 23 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

12. IMBALANCES

Transporter shall not be responsible for eliminating any

imbalances in volumes between Shipper and any third party,

including imbalances between local distribution companies

and specific end users. Furthermore, Transporter shall not

be obligated to deviate from its standard operating and

accounting procedures in order to reduce or eliminate any

such third party imbalances. No imbalance penalty shall be

imposed when a prior period adjustment applied to the

current period causes or increases a current month penalty.

13. POSSESSION OF GAS

13.1 Shipper agrees to indemnify and hold Transporter

harmless against any loss or cost incurred by

Transporter on account of any liens, encumbrances and

claims whatsoever. Transporter agrees to indemnify and

hold Shipper harmless against any loss or cost incurred

by Shipper on account of liens, encumbrances or claims

resulting from any possession or transportation by

Transporter.

13.2 Shipper shall be in exclusive control and possession of

the gas until such has been received by Transporter at

the Point(s) of Receipt and after the gas has been

delivered to Shipper or for Shipper's account at the

Point(s) of Delivery. The Party which is or is deemed

to be in exclusive control and possession of such gas

shall be responsible for all injury, damage, loss, or

liability caused thereby. Transporter's responsibility

with respect to Shipper's gas shall be deemed to be met

if Transporter exercises due diligence in protecting

such gas.