Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

Effective Date: 06/17/2001, Docket: RP01-422-000, Status: Effective

Second Revised Sheet No. 35 Second Revised Sheet No. 35 : Effective

Superseding: Original Sheet No. 35

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

to the subject capacity at the end of the contract term will

cease.

18.2 BIDDING PROCESS

Upon Transporter's receipt of the Shipper's Right of First Refusal

notice described in Section 18.1 above, Transporter will post the

Shipper name, effective date, and primary receipt and delivery points

and their associated capacity on the Informational Postings portion of

its Interactive Web Site in order to solicit bids for the capacity.

A Bidder desiring to obtain the posted capacity must submit a bid

via Facsimile 303-763-3515 to Transporter in accordance with Section

18.3 below, within thirty (30) calendar days of the posting to

participate in the Right of First Refusal process.

If the tendered bids are less than maximum rate, Transporter will

utilize an iterative bidding process. The highest bid will be posted on

the Informational Postings portion of Transporters Interactive Web Site

and each iteration's best offer will be posted on the Interactive Web

Site for informational purposes, along with the name of the highest

bidder. In subsequent iteration(s), bidders will have ten (10) days to

respond to Transporter after a posting; thereafter, after each bidding

period, Transporter will have up to five (5) days to perform an

analysis to determine the best offer as described in Section 18.4 below.

The bidding process must be completed forty-five(45) days before the end

of the existing contract term.

If any bid submitted by a bidder is subsequently withdrawn, any

new bids submitted by such bidder for the same path(s) must be at a

higher rate. Transporter will have the right to reject, on a non-

discriminatory basis, any bid not at the maximum rate.

18.3 CONTENTS OF BID

Service Agreements shall include the corresponding Shipper's bid

and must contain the price, term, amount of capacity desired and primary

receipt and delivery points.