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. 43A Original Sheet No. 43A : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

Subject to the provisions in Sections 23.10(d)(1),

(2) and (3) below, the selection of winning Qualified Bid(s) among

Qualified Bids (or combinations thereof) of equal Winning Bid Value

is based on the following order of preference: (i) pro rata, if

possible; (ii) preference for a Qualified Bid with the highest

Maximum Bid Volume; (iii) preference for a Qualified Bid with the

lowest Minimum Bid Volume; and (iv) first come, first served.

The specific Qualified Bid selection procedure is as follows:

(1) Identify the Winning Bid Value. If there is

only one Qualified Bid, or combination of Qualified Bids, which

create the Winning Bid Value, such Qualified Bid(s) shall be awarded

the released capacity.

(2) In order to break ties, identify all Qualified

Bids which, alone or in combination with other Qualified Bids, can

create the Winning Bid Value. Rank order these Qualified Bids in

order of their Unit Bid Value from highest to lowest. Allocate the

Capacity Release Request capacity first to the Maximum Bid Volume of

each Qualified Bid with the highest Unit Bid Value; allocate any

remainder to the Maximum Bid Volume of each Qualified Bid with the

next highest Unit Bid Value; and so forth. If, at any step, the

available Capacity Release Request capacity is less than the combined

Maximum Bid Volumes of Qualified Bids with equal Unit Bid Values,

then the Capacity Release Request capacity shall be allocated on a

pro rata basis to each Qualified Bid based on its Maximum Bid Volume.

To the extent such a pro rata allocation would result in a capacity

allocation to one or more Qualified Bid(s) below its Minimum Bid

Volume, then such below-minimum Qualified Bids shall be discarded in

their entirety and the Capacity Release Request capacity shall

instead be allocated on a pro rata basis (based on the Maximum Bid

Volume of each Qualified Bid) among the remaining Qualified Bid(s).

(3) In the event that the previous Section

23.10(d)(2) pro rata allocation procedure does not result in a single

winning combination of Qualified Bid(s) with the Winning Bid Value,

then Section 23.10(d)(2) shall be disregarded and the winning

Qualified Bid(s) shall be determined in the following manner: