Kinder Morgan Interstate Gas Transmission LLC

Second Revised Volume No. 1-D

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Effective Date: 12/28/1999, Docket: GT00- 19-000, Status: Effective

Original Sheet No. 18 Original Sheet No. 18 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES

8.2 At any receipt or delivery point, Transporter will allocate

available gas to Shippers according to the following methodology:

a. Gas will be allocated first to firm transportation

through the point, up to the daily nomination. If

unsufficient gas is available to satisfy firm nominations,

the available gas will be allocated pro rata based on

firm nominations.

b. Any remaining volumes will be allocated pro rata to

interruptible transportation based on the approved

nominations.

c. The transportation priority for fuel shall be the same

as the level of service of the transaction which it applies.

8.3 PREDETERMINED ALLOCATION AGREEMENTS. Transporter may enter into

mutually acceptable predetermined allocation agreements with

upstream or downstream parties to accommodate allocation

methodologies different than that outlined in Section 8.2.

The allocation methodology types which two parties may agree

upon are ranked, pro rata, percentage, swing and operator

provided value. If the two parties cannot agree upon an

allocation methodology, pro rata based upon confirmed nominations

shall be used as the default method. The party responsible for

custody transfer (the party performing the measurement function)

shall provide the allocation. Two welded parties shall agree

on who submits a pre-determined allocation methodology and who

allocates at the point before gas flows. The is no need to

submit pre-determined allocation if a transportation service

provider has an operational balancing agreement in effect for

a point. Only one pre-determined allocation methodology shall

be applied per allocation period. The upstream or downstream

party providing the point confirmation shall submit the

pre-determined allocation to the allocating party after or

during confirmation and before start of gas day. The

allocating party shall send back confirmation of receipt of

the pre-determined allocation within fifteen minutes.

Transporter will accept GISB-approved allocation methodology

types from the upstream or downstream custody transfer party

who is providing the point confirmation.

8.4 OPERATIONAL BALANCING AGREEMENTS. Transporter will

enter into mutually acceptable operational balancing

agreements with upstream or downstream parties.