Kinder Morgan Interstate Gas Transmission LLC

Second Revised Volume No. 1-D

Effective Date: 03/27/2000, Docket: RP00-316-001, Status: Effective

First Revised Sheet No. 42A First Revised Sheet No. 42A : Effective

Superseding: Original Sheet No. 42A

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

(b) The volume in a Qualified Bid may not be less than

the minimum volume required for an Eligible Firm Transportation

Agreement under Transporter's Tariff. Neither the volume nor the

release term specified in a Qualified Bid may exceed the maximum

volume or term specified in a Capacity Release Request, unless the

Capacity Release Request specifically allows otherwise. A Qualified

Bidder must accept all the terms and conditions of a Capacity Release

Request submitted under Section 23.4 (involving a Prearranged

Release) except for the level of the reservation charge and the MDQ,

unless the Capacity Release Request specifically allows otherwise.

may not bid rates which would exceed Transporter's maximum

reservation charge applicable to the Eligible Transportation

Agreement capacity. If the Original Shipper is paying a negotiated

rate, a Qualified Bidder may not bid a rate which exceeds the

applicable Recourse Rate, except as provided in (ii). The maximum

Qualified Bid reservation charge includes all demand surcharges,

including all direct-billed charges which are or may become

applicable to the Eligible Transportation Agreement capacity.

(ii) Notwithstanding the provisions of (i), the

rates which are bid and charged for a Released Firm Transportation

Agreement may exceed the otherwise applicable maximu rates through

September 30, 2002, to the extent such rate ceilings have been waived

for released capacity contracts of less than one (1) year pursuant to

18 C.F.R. Section 284.8(i).

(d) All Qualified Bids shall provide for payment of

maximum commodity charges under Transporter's Tariff for the capacity

bid, as well as all other applicable add-on charges and surcharges

under Transporter's Tariff, such as, but not limited to, ACA, Fuel

Gas and Unaccounted For Gas.

(e) A Qualified Bid received by Transporter during an

open season shall be posted by Transporter on its DART system,

without the name of the Qualified Bidder. A Qualified Bid may be

withdrawn by the Qualified Bidder prior to the close of the open

season, but may not be withdrawn thereafter. Following such

withdrawal, the Qualified Bidder cannot bid for the same capacity

during the open season at a lower rate.

(f) All Qualified Bids must be consistent with all

provisions of Transporter's Tariff. Any Qualified Bid inconsistent

with Transporter's Tariff or the applicable Capacity Release Request

shall be null and void.