Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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

Original Sheet No. 64 Original Sheet No. 64 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

(1) Ninety percent (90%) of such Gas Supply

Realignment Costs shall be allocated to

Shippers under Rate Schedules FT and NNS,

pursuant to Order No. 636, pro rata based on

the ratio of the Shipper's aggregate MDQ to

the total aggregate MDQ under Rate Schedules

FT and NNS effective as of the date of

Transporter's GSR surcharge filings and

adjusted as necessary during that recovery

period to reflect any changes in Shipper's

MDQ, and recovered from such Shippers under

Rate Schedules FT and NNS by means of a GSR

Demand Surcharge per MDQ. Allocation of Gas

Supply Realignment Costs shall not be reduced

for any Shipper by virtue of any discounted

FT or NSS services commencing after the

implementation date. Shippers under Rate

Schedules FT and NNS taking assignment of gas

supply contracts from Transporter shall be

excluded from the allocation of Gas Supply

Realignment Costs as calculated pursuant to

Section 26.4.

(a) Transporter shall render a bill for the

entire amount of each Shipper's GSR

Demand Surcharge Amount with respect to

any quarterly filing on or after the

tenth day of the month following the

effective date of the filing. Such

amount shall be payable in three (3)

consecutive monthly installments equal

to one-third ( )of such amount on each

date following submission of such bill

on which payment is payable.

(b) Each Shipper shall have the option, in

lieu of payment of such GSR Demand

Surcharge in three installments, of

paying twelve (12) consecutive monthly

installments equal to 1/12th of such

amount. Additional carrying charges on

such amount shall be calculated and

included on each monthly bill for those

Shippers electing the twelve (12) month

payment option. Monthly amounts shall

be payable on the 20th of each month

following submission of the bill

referred to in paragraph (a).