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. 63 Original Sheet No. 63 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

Pricing Differential costs are costs incurred

beginning one (1) month from the implementation

date that are equal to 1) the difference between

the contract price under List A and List B

Contracts and the higher of (a) the price paid by

a third party purchaser from time to time for gas

quantities available for sale attributable to such

Contracts or (b) a floor price equal to the

applicable GSR Index Price 2) times the quantity

sold. Transporter will continue to negotiate to

buyout, buydown, assign, modify or settle the

terms and conditions of the Contracts from time to

time so as to result in the minimization of

transition costs without regard to continuation of

any other Contract. In addition, within seven (7)

days after receipt of a final Commission order in

Docket No. RS92-19-000, Transporter will file

under seal List A and List B. Contracts under

List A and List B will be available for review in

Lakewood and Washington upon execution of an

appropriate protective and non-disclosure

agreement.

b. Transporter will make filings to be effective

commencing one (1) month after Commission

authorization in a Section 4 proceeding, and

quarterly thereafter, to recover any Gas Supply

Realignment Costs actually incurred and booked by

the end of the quarter preceding the filing and

which are known and measurable with reasonable

accuracy, plus carrying charges calculated on the

net outstanding balance (i.e., after Gas Supply

Realignment revenues are received and credited)

from the date of incurrence of such Gas Supply

Realignment Costs to the projected date of payment

as determined pursuant to Section 154. 501(d)of

the Commission's regulations; provided, however,

that on and after the date of the credit

calculated pursuant to Section 26.4e. carrying

charges shall be computed on the net outstanding

balance.