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. 95 First Revised Sheet No. 95 : Effective

Superseding: Original Sheet No. 95

GENERAL TERMS AND CONDITIONS - continued

39. ACQUIRED CAPACITY

39.1 Transporter may from time to time enter into transportation or

storage agreements with upstream or downstream entities, including other

interstate pipelines, intrastate pipelines, or local distribution

companies (Acquired Capacity). Transporter may use Acquired Capacity

for its system operational needs and/or to render service to its

customers. Except as provided in subsection (b), Transporter states

that, if it transports or stores gas for others using Acquired Capacity,

it will apply to such services the same rates and tariffs as are

applicable to on-system customers, as such rates and tariffs may change

from time to time. For purposes of any use of Acquired Capacity covered

by this Section 39.1, the "shipper must hold title" requirement shall be

waived.

39.2 Nothing herein shall be read to preclude Transporter from filing

with the Commission for different tariff provisions applicable to any

such service which Transporter provides using Acquired Capacity;

provided, however, that the waiver of the "shipper must hold title"

requirement hereunder shall not apply in such circumstance, and

Transporter will be required to seek a case-specific waiver of that

requirement from the Commission.

40. THIRD PARTY IMBALANCE MANAGEMENT

40.1 Transporter shall accommodate Third Party Imbalance Management

Services on a non-discriminatory basis as long as these services

comply with applicable NAESB Standards and do not adversely impact

Transporter's system operations. These services may be used to

manage imbalances between actual receipts and deliveries; to

manage variances between scheduled and actual deliveries; and to

supply gas for overruns.

40.2 Criteria for Third Party Services will include compliance with the

NAESB Nominations and Confirmation Time Lines, and meeting

Transporter credit requirements appropriate for the quantity of

Shipper Imbalance Gas for which such Third Party may be

responsible.