Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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

First Revised Sheet No. 81B First Revised Sheet No. 81B : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE - continued

(3) Third, to any Shipper which has been identified to

take action and is operating in a manner which conflicts

with sound operational practices in relation to

Transporter's system; and

(4) Lastly, to all other Shippers.

29.9 REFUND OF PENALTY AMOUNTS

The amounts collected as penalties by Transporter for each

Directional Notice or Critical Time Operational Flow Order shall

be refunded through an event-by-event calculation in the annual

reconciliation filing as referenced in Section 35 of these General

Terms and Conditions and as follows:

(a) First, the amounts collected will be used to compensate

Transporter for any costs it has incurred (including any

compensation Transporter agreed to provide for voluntary

actions and any storage injection or withdrawal charges not

collected because of the waiver of the injection and

withdrawal charges as described in Section 29.6) to

alleviate the conditions which resulted in issuance of the

Directional Notice or in declaration of the Critical Time

Operational Flow Order.

(b) Then, any remaining amounts will be refunded to all

Complying Shippers and other Shippers that did not incur

penalties based on the method described in Section 35 of

these General Terms and Conditions.

29.10 STANDARDS

(a) In issuing Directional Notices, Critical Time Operational

Flow Orders or taking other operational control action under

this Section, Transporter shall apply consistent and

objective engineering and operational criteria to define the

overall operational integrity of the system and acceptable

pressure levels to be maintained, to evaluate the imminent

nature of any threat to these factors, and to determine what

steps are necessary to preserve such factors. Such criteria

may be changed from time to time as operating experience

indicates.