Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

Effective Date: 12/28/1999, Docket: GT00- 19-000, Status: Effective

Original Sheet No. 57 Original Sheet No. 57 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

25. ORDER NO. 500/528. FLOW-THROUGH OF PIPELINE SUPPLIERS

BUY-OUT BUY-DOWN BILLINGS.

25.1 PURPOSE.

This section establishes the procedures under which

Transporter will recover from Shippers under

Transporter's Rate Schedules the total

jurisdictional portion of Buyout-Buydown

Obligations paid by Transporter pursuant to

applicable tariff provisions of a former upstream

pipeline supplier, on an as billed basis.

25.2 BASIS OF BILLING.

Unless otherwise approved by the Commission,

Transporter will calculate each affected Shipper's

allocated share of Transporter's fixed charge

Buyout-Buydown Obligation using the same procedures

the upstream pipeline utilized in allocating such cost.

Any refunds related to Buyout-Buydown billings which

Transporter receives will be refunded to Shippers by

Transporter on the same basis as the refund amount was

initially recovered by Transporter from such Shippers.

Any increase or decrease in Buyout-Buydown billings

to Transporter will be flowed-through to Shippers on

the same proportionate basis, to the extent possible,

the increase or decrease was allocated to

Transporter by the applicable upstream pipeline.

25.3 ELECTION TO DELAY BILLING.

Any Shipper notifying Transporter in writing no later

than 30 days after the date of the Commission's order

accepting tariff sheets authorizing the initial fixed

charge billing of its election to do so may delay the

initial billing of the Buyout-Buydown Obligation

applicable to such Shipper until the billing period

specified in the Filing.