Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

Effective Date: 06/01/2003, Docket: RP00-343-006, Status: Effective

Third Revised Sheet No. 79 Third Revised Sheet No. 79 : Effective

Superseding: First Revised Sheet No. 79

GENERAL TERMS AND CONDITIONS FOR SERVICE - continued

result from violations by Shippers of a particular

Directional Notice, Transporter will post a penalty

level of $6 per Dth for violation of that specific

Directional Notice.

(h) Transporter may also issue Directional Notices as

follows:

(1) In order to improve system operations,

Transporter may require any Shipper which has a

variance of twenty percent (20%) or more between

actual deliveries to Transporter at a Receipt

Point and the confirmed nomination at that

Receipt Point to conform the deliveries to the

confirmed nomination as of the Day that

commences with the effectiveness of the

Directional Notice.

(2) Transporter may also require Shippers to keep

any variances between actual flows and confirmed

nominations at all of the Receipt Points or

Delivery Points in a Rate Zone under each

Shipper's Agreements, which are to the detriment

of Transporter's system, within a ten percent

(10%) tolerance. If a Shipper ("Swing Shipper")

agrees to keep all other Shippers at a Delivery

Point whole with their nominations, such other

Shippers' confirmed nominations and actual takes

at that point will be included in the total

confirmed nominations and the total actual

deliveries of the Swing Shipper at all Delivery

Points in the Rate Zone for purposes of

determining the Swing Shipper's variance.

Shippers that fail to comply with such

Directional Notice described in this subsection

(h) shall be subject to a penalty of $10.00 per

Dth outside of a ten percent (10%) tolerance.

(i) A Shipper shall not be subject to overrun penalties or

Imbalance penalties with respect to any action taken

in conformance with a Directional Notice issued by

Transporter.