Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

Effective Date: 06/01/2004, Docket: CP03- 39-001, Status: Effective

Second Revised Sheet No. 40 Second Revised Sheet No. 40 : Effective

Superseding: First Revised Sheet No. 40

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

21.2 FEDERAL ENERGY REGULATORY COMMISSION ANNUAL CHARGE ADJUSTMENT:

a. PURPOSE

For the purpose of funding of the Federal Energy Regulatory

Commission's (FERC) costs incurred in any fiscal year, this

Article 21 establishes an Annual Charge Adjustment to be

applicable to all of Transporter's Rate Schedules as required

and as set forth on Sheet No. 4 of Volume No. 1-A of this FERC

Gas Tariff. Transporter shall not recover any annual charges

recorded in FERC Account No. 928 in a NGA Section 4 rate case.

b. BASIS

The basis for the charge shall be the amount which is

redetermined annually by FERC pursuant to Docket No. RM87-3

(May 29, 1987).

c. REMITTANCE TO THE FERC

Transporter shall remit to the FERC, not later than 45 days

after receipt of the Annual Charge Billing, the Total Annual

Charge stated in such billing.

22. GENERAL

For purposes of Transporter's Service Schedules the following

subparagraphs also shall be applicable:

22.1 TARIFF CHANGES

a. The rates, terms, and conditions, for Services may require

change from time to time. Accordingly, Transporter's rates,

terms and conditions, may from time to time be changed by

appropriate lawful processes, including the filing of changed

provisions with the FERC.