Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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

Second Revised Sheet No. 52G Second Revised Sheet No. 52G : Effective

Superseding: First Revised Sheet No. 52G

GENERAL TERMS AND CONDITIONS - continued

(A) Transporter shall identify the highest

individual Maximum Bid Volume for a Qualified Bid which, alone or in

combination with other Qualified Bid(s), can create the Winning Bid

Value. Transporter shall discard all Qualified Bid combinations which

do not contain a Qualified Bid with such highest Maximum Bid Volume.

Transporter shall identify the highest volume which can be allocated

to such Qualified Bid with such highest Maximum Bid Volume in the

remaining combinations and still have the Winning Bid Value.

Transporter shall discard all combinations of Qualified Bid(s) which

do not contain the highest such volume allocation. If this does not

break the tie, then Transporter shall repeat the above procedure

looking to the next highest Maximum Bid Volume, with the highest

volume allocated thereto, within each remaining combination of

Qualified Bid(s) with a Winning Bid Value; and so forth, until the tie

is broken or all Qualified Bids in the remaining combinations are

reviewed.

(B) If the above does not break the tie, Transporter

shall identify again the Qualified Bid within each remaining

combination with the highest Maximum Bid Volume and the highest volume

allocated to such Qualified Bid, and identify which such Qualified Bid

has the lowest Minimum Bid Volume. Transporter shall discard all

combinations which do not contain such Qualified Bid. If this does

not break the tie, Transporter shall repeat the above procedure

looking to the next highest Maximum Bid Volume, with the lowest

Minimum Bid Volume, within each remaining combination of Qualified

Bid(s) with the Winning Bid Value; and so forth, until the tie is

broken or all Qualified Bid(s) in the remaining combination are

reviewed.

(C) If the above does not break the tie, Transporter

shall identify again the Qualified Bid within each remaining

combination with the highest Maximum Bid Volume. The combination

containing such Qualified Bid that Transporter's Interactive Web Site

shows was submitted and received earliest by the Interactive Web Site

(or if Interactive Web Site is not available and the Qualified Bid was

submitted in writing, the time Transporter received the Qualified Bid)

shall be the winning combination. The next highest Maximum Bid Volume

within each remaining combination shall be used as necessary pursuant

to the above first come, first served rule to break any remaining

ties; and so forth as necessary to break any remaining ties.

(4) In no event shall the combination of winning

Qualified Bid(s) result in a total Bid Value less than the highest

possible total Bid Value achievable from a combination of Qualified

Bid(s) consistent with the Qualified Bids, the Capacity Release

Request and this Section 23.