Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-B

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

Original Sheet No. 97 Original Sheet No. 97 : Effective

GENERAL TERMS AND CONDITIONS OF SERVICE - continued

40.6 Absent any other arrangements made by Shipper with Transporter, in

the event a Shipper purchases Third Party Imbalance Management

Services, and the Third Party Provider fails in whole or in part

to provide those services, and an Imbalance results, Shipper will

be deemed to have received PALS Service and will pay Transporter

the maximum PALS Service rate pursuant to this FERC Gas Tariff,

plus any additional costs incurred by Transporter to provide the

services. If PALS is unavailable, Shipper may be subject to

overrun charges reflective of the service(s) provided.

40.7 To the extent Transporter is unable to collect from the Shipper

costs, expenses or liabilities incurred by Transporter due to the

Third Party Provider's failure to provide the Imbalance Management

Services, Transporter may pursue collection of any insufficiency

from the Third Party Provider.