Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

Effective Date: 06/17/2001, Docket: RP01-422-000, Status: Effective

First Revised Sheet No. 62 First Revised Sheet No. 62 : Effective

Superseding: Original Sheet No. 62

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

After seven (7) business days from the date the Commission issues

an order accepting Transporter's revised Compliance Filing in

Docket No. RS92-19, Transporter may buyout or realign its

remaining CAM gas supply contracts which have not been assigned.

GSR costs shall include buyout, buydown or other reformation costs

relating to CAM gas contract activity plus carrying charges.

DEFINITIONS.

(1) CAM Gas - Gas which KMIGT has under contract and is

currently priced at or above $2.50 per Dth delivered into KMIGT

pooling receipt point and for which KMIGT has no contractual right

to terminate the contract, market out, reduce takes, or control

production.

(2) NPV of CAM Gas - The net present value discounted cash

flow of the total projected cost of CAM gas over a twenty (20)

year period.

26.4 TRANSITION COST RECOVERY MECHANISM

a. In addition to the other costs included in the rates set

forth in this FERC Gas Tariff for Rate Schedules FT, NNS and IT, Shipper

shall, beginning one (1) month from Commission authorization in a

Section 4 proceeding, recover from Customers under Rate Schedules FT,

NNS and IT its Gas Supply Realignment Costs in accordance with the

procedures set forth in this Section Gas Supply Realignment Costs are

those costs attributable to realigning Shipper's gas supply contracts as

permitted by Order No. 636, et al. including but not limited to Pricing

Differential costs.