Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

Effective Date: 12/01/2000, Docket: RP01- 70-000, Status: Effective

Second Revised Sheet No. 89 Second Revised Sheet No. 89 : Effective

Superseding: Original Sheet No. 89

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

36. NEGOTIATED RATES

36.1 Availability.

Transporter and Shipper may mutually agree in writing to a

Negotiated Rate for service under any rate schedule contained

in Transporter's Tariff. Transporter shall make any filings

at the FERC necessary to effectuate a Negotiated Rate

agreement. Transporter's Recourse Rate is available to any

Shipper that does not desire to negotiate a rate with the

Transporter.

36.2 Definition.

Transporter and Shipper may mutually agree to a negotiated

rate or rate formula for service, in which one or more of the

individual rate components may be less than, equal to, or

greater than Transpoter's maximum and/or minimum rates, may be

based on a rate design other than Straight Fixed Variable

(SFV), and may include a minimum volume.

36.3 Limitations.

This Section 36 does not authorize Transporter to negotiate

terms and conditions of service.

36.4 Capacity Allocation.

For purposes of curtailment of interruptible services pursuant

to Section 16.3, and for scheduling interruptible services

pursuant to Section 22.6, Shippers which have agreed to pay a

Negotiated Rate which exceeds the maximum tariff rate, when

calculated on a 100 percent load factor basis, will be

considered to be paying the maximum Recourse Rate. In

evaluating bids for firm service or allocating capacity among

competing requests for firm service where one or more bid(s)

is at a Negotiated Rate which is proposing a reservation rate

or other form of revenue guarantee (i.e., minimum throughput

condition or minimum bill) that exceeds the maximum applicable

reservation rate, the net present value of any such bid for

firm service shall be capped by the net present value of the

maximum applicable reservation rate for such service over the

contract term bid.