Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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Effective Date: 10/01/2002, Docket: RP02-505-001, Status: Effective

Substitute Second Revised Sheet No. 54A Substitute Second Revised Sheet No. 54A : Effective

Superseding: Substitute First Revised Sheet No. 54A

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

23.19 CAPACITY RELEASE FOR SCS SHIPPERS

If an SCS Shipper desires to release any of its

capacity on a permanent basis to a non-SCS Shipper,

Transporter reserves the right to take that capacity back

and post for bid. If an SCS Shipper releases any of its

capacity on a temporary basis, and the Replacement Shipper

nominates to secondary points, the Replacement Shipper will

pay Transporter the applicable maximum NNS rate for such

transportation path unless otherwise agreed to by

Transporter in writing.

23.20 TRANSPORTER'S RIGHT TO TERMINATE A CAPACITY RELEASE

Transporter may elect to terminate a Replacement Shipper's

Agreement with Transporter upon thirty (30) days written notice to

the Replacement Shipper for termination of service to the Releasing

Shipper from which the Replacement Shipper obtained its capacity,

under the following conditions:

A. The Releasing Shipper has failed to make timely payment

or maintain credit (or provide adequate assurance of payment) in

accordance with Section 10 and/or Section 22.7 of these General

Terms

and Conditions and Transporter has suspended or terminated service

to

the Releasing Shipper or has provided notice under these General

Terms and Conditions which ultimately results in suspension or

termination of service; and

B. The rate stated in the Replacement Shipper's Agreement

is

less than the rate for service under Transporter's contract with

the

Original Shipper; provided, however, that a Replacement Shipper

which

is creditworthy can continue an existing capacity release by

notifying Transporter that it agrees to pay a rate which it

specifies

that equals or exceeds the lower of: (i) the applicable maximum

rate; or (ii) the same rate as is in the original Agreement between

Transporter and the Releasing Shipper. Alternatively,

notwithstanding Section 23.8(c) of these General Terms and

Conditions, Transporter and the Replacement Shipper may agree upon

pricing terms, in which case the release shall continue. Such

notification or agreement must be effectuated prior to the end of

the

notice period.