Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

Effective Date: 05/01/2002, Docket: RP02-202-000, Status: Effective

First Revised Sheet No. 52F First Revised Sheet No. 52F : Effective

Superseding: Original Sheet No. 52F

GENERAL TERMS AND CONDITIONS - continued

Subject to the provisions in Sections 23.10(d)(1), (2) and (3)

below, the selection of winning Qualified Bid(s) among Qualified Bids

(or combinations thereof) of equal Winning Bid Value is based on the

following order of preference: (i) pro rata, if possible; (ii)

preference for a Qualified Bid with the highest Maximum Bid Volume;

(iii) preference for a Qualified Bid with the lowest Minimum Bid

Volume; and (iv) first come, first served.

The specific Qualified Bid selection procedure is as follows:

(1) Winning Bid Value Identification. If there is only

one Qualified Bid, or combination of Qualified Bids, which creates the

Winning Bid Value, such Qualified Bid(s) shall be awarded the released

capacity.

(2) In order to break ties, Transporter shall identify

all Qualified Bids which, alone or in combination with other Qualified

Bids, can create the Winning Bid Value. Transporter shall rank order

these Qualified Bids in order of their Unit Bid Value from highest to

lowest. Then Transporter shall allocate the Capacity Release Request

capacity first to the Maximum Bid Volume of each Qualified Bid with

the highest Unit Bid Value; Transporter shall allocate any remainder

to the Maximum Bid Volume of each Qualified Bid with the next highest

Unit Bid Value; and so forth. If, at any step, the available Capacity

Release Request capacity is less than the combined Maximum Bid Volumes

of Qualified Bids with equal Unit Bid Values, then the Capacity

Release Request capacity shall be allocated on a pro rata basis to

each Qualified Bid based on its Maximum Bid Volume. To the extent

such a pro rata allocation would result in a capacity allocation to

one or more Qualified Bid(s) below its Minimum Bid Volume, then such

below-minimum Qualified Bids shall be discarded in their entirety and

the Capacity Release Request capacity shall instead be allocated on a

pro rata basis (based on the Maximum Bid Volume of each Qualified Bid)

among the remaining Qualified Bid(s).

(3) In the event that the previous Section 23.10(d)(2)

pro rata allocation procedure does not result in a single winning

combination of Qualified Bid(s) with the Winning Bid Value, then

Section 23.10(d)(2) shall be disregarded and the winning Qualified

Bid(s) shall be determined in the following manner: