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. 42C Original Sheet No. 42C : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

(d) A capacity release shall become effective, and

nominations for gas service utilizing the release capacity shall be

accepted, at the latest of the following times:

(1) The applicable nomination deadline set forth in

Section 3.2 of these General Terms and Conditions for the start of

service requested for such release in the Capacity Release Request;

or

(2) The applicable nomination deadline set forth in

Section 3.2 of these General Terms and Conditions on the day

following the capacity award.

(e) Gas nominations for transportation pursuant to

released capacity are subject to the provisions of Section 3 of these

General Terms and Conditions. Gas nominations by a Shipper utilizing

released capacity awarded by Transporter shall constitute Shipper's

binding acceptance of the terms and conditions of the capacity award

by Transporter pursuant to this Section 23, including Transporter's

standard form of Agreement covering the Rate Schedule applicable to

the released capacity and the terms and conditions of the Qualified

Bid and the Capacity Release Request, in accordance with

Transporter's Tariff.

(f) Subject to the other provisions in this Section 23,

in the event that there is no Qualified Bidder or Prearranged Shipper

for posted Eligible Firm Transportation Agreement capacity during an

open season, no capacity release will be awarded and the Releasing

Shipper shall retain the capacity sought to be released.

23.10 BID EVALUATION PROCEDURE

(a) Unless specifically requested otherwise by a

Releasing Shipper in its Capacity Release Request, Qualified Bids for

released capacity shall be evaluated pursuant to Sections 23.10(b)

through 23.10(g) below. Any Qualified Bid which does not meet a

minimum price condition stated in the Capacity Release Request shall

be rejected outright. Any Qualified Bid with a contingency must have

such contingency eliminated before 3:00 p.m. Central Clock Time

following the close of the open season, unless the Releasing

Shipper's offer has specified a later time; otherwise, such Qualified

Bid will be rejected.