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. 67 Original Sheet No. 67 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

(2) The aggregate amount of Gas Supply

Realignment Costs deemed collected during the

previous twelve (12) month period by

Transporter under Rate Schedule IT as

determined pursuant to Section 26.3 d.

Transporter shall have the option at any time

after twelve (12) months from the initial

implementation of the GSR surcharge to file to

recover any Gas Supply Realignment Costs

unrecovered through its Rate Schedule IT rates

through an alternate mechanism.

d. To determine pursuant to Section 26.4 c.(2)

whether Transporter has recovered Gas Supply

Realignment Costs pursuant to Rate Schedule IT,

Transporter shall compare total IT revenues during

the initial twelve (12) month period of the GSR

surcharge against the cost of service allocated to

be recovered from Rate Schedule IT excluding Gas

Supply Realignment Costs. To the extent such

revenue exceeds such cost of service allocation,

excluding Gas Supply Realignment Cost, Transporter

shall consider such excess revenue, less

applicable surcharges and variable costs incurred

in providing the service, to be recovery of the

Gas Supply Realignment Costs allocated to Rate

Schedule IT for such period. Ninety percent (90%)

of any additional excess revenue, less applicable

surcharges and variable costs incurred in

providing the service, shall also be considered

recovery of Gas Supply Realignment Costs and shall

be credited against future Gas Supply Realignment

Costs. Transporter shall retain the remaining ten

percent (10%) of such excess revenue without any

refund obligation.

e. Shipper's aggregate MDQ for purposes of allocating

Gas Supply Realignment Costs shall be reduced by a

credit percentage to the extent Customer takes

assignment of a CAM Gas Supply contract(s).

Shipper's credit percentage shall be calculated as

follows: