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

GENERAL TERMS AND CONDITIONS OF SERVICE - continued

(b) In applying this Section, Transporter shall operate its

system in a non-discriminatory manner, without regard to the

source of supply, the identity or nature of any Shipper or

the identity of any entity tendering or receiving Gas except

as otherwise explicitly provided herein.

29.11 LIABILITY

(a) Transporter shall not be liable to any person for the manner

in which it operates its system, or for any diversion of Gas

or Capacity rights or any other adverse consequences to such

person which may result from its actions, provided that

Transporter's actions were undertaken in furtherance of and

in accordance with this Section and provided further that

such adverse consequences are not attributable to

Transporter's negligence or misfeasance.

(b) Compliance with the Directional Notices, Critical Time

Operational Flow Orders and the other terms and conditions

of Transporter's FERC Gas Tariff is essential to provide

deliveries and services under all rate schedules. A failure

by one or more Shippers to comply with the Directional

Notices or Critical Time Operational Flow Orders may affect

Transporter's ability to provide such deliveries and

services. In such event and in addition to other provisions

hereof and not in lieu of any other remedies available in

law or at equity, Transporter will, except for negligence or

undue discrimination, have no liabiltiy consistent with the

provisions in Section 16.5 of these General Terms and

Conditions.

another Shipper or retained by Transporter as a result of a

Directional Notice or Critical Time Operational Flow Order,

the Party receiving such Gas supplies shall compensate the

Shipper whose Gas was diverted or retained at one hundred

percent (100%) of Transporter's cashout index price. Should

reduced deliveries result from the issuance of a Directional

Notice or Critical Time Operational Flow Order, Transporter

shall provide reservation charge credits to Shippers

reflecting such reduced deliveries.