Kinder Morgan Interstate Gas Transmission LLC

Second Revised Volume No. 1-D

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

Original Sheet No. 31 Original Sheet No. 31 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

For the purpose of funding of GRI's approved

expenditures, this Section establishes a GRI Adjustment

Charge to be applicable to Transporter's Rate Schedules

FT-BW and IT-BW, as set forth on Sheet No. 4 of First

Revised Volume No. 1-C of this FERC Gas Tariff;

provided however, such charge shall not be applicable

to Shippers which are interstate pipelines and which

include in their rates a charge for RD&D expenditures,

or to Shippers which pay a charge for RD&D expenditures

to a third party in connection with third party

transportation of gas.

b. BASIS OF THE GRI ADJUSTMENT CHARGE

The Rate Schedules shall include an increment for a GRI

Adjustment Charge for RD&D. Such adjustment charge

shall be that increment, adjusted to Transporter's

pressure base and heating value, if required, which has

been approved by Federal Energy Regulatory Commission

orders approving GRI's RD&D expenditures.

c. FILING PROCEDURE

The notice period and proposed effective date of

filings pursuant to this subsection shall be those

permitted under the Commission's Regulations unless,

for a good cause shown, a lesser notice period and

different effective date is allowed by valid Commission

order. Any such filing shall not become effective

unless it becomes effective without suspension or

refund obligation.

VOLUNTARY CONTRIBUTIONS MECHANISM

Pursuant to the GRI Settlement approved by FERC order issued

April 29, 1998, at Docket Nos. RP97-149-003, et al., [(83

FERC Para. 61,093 (1998))], Transporter and other pipelines

have agreed to be voluntary collection agents for Shippers who

voluntarily choose to contribute to GRI programs through a

“check-the-box” approach on pipelines’ invoices. The amounts

collected pursuant to the “check-the-box” mechanism will not

be part of Transporter’s jurisdictional rates and the FERC

will not review or approve any such amounts.