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. 50 Original Sheet No. 50 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

25. ORDER NO. 500/528. FLOW-THROUGH OF PIPELINE SUPPLIERS BUY-OUT BUY- DOWN

BILLINGS.

25.1 PURPOSE.

This section establishes the procedures under which Transporter

will recover from Shippers under Transporter's sales Rate

Schedules CD-1, WPS-1, CD-2, WPS-2, SF-1 and SF-2 the total

jurisdictional portion of Buyout-Buydown Obligations paid by

Transporter pursuant to applicable tariff provisions of its

upstream pipeline supplier, Colorado Interstate Gas Company

("CIG"), on an as billed basis.

25.2 BASIS OF CIG's BILLING.

CIG has filed in Docket Nos. RP89-98 and RP89-133 to recover a

portion of its Buyout-Buydown Costs from its jurisdictional

customers. For the purposes of calculating each customer's

Purchase Deficiency, CIG has utilized a Base Period of Fiscal Year

1982 and a Deficiency Period of Fiscal Years 1983 through 1988.

CIG's fiscal years are the 12 month periods ending on September

30 of the year indicated. Pursuant to this calculation, CIG has

allocated $218,984, as adjusted, as Transporter's fixed charge

Buyout-Buydown Obligation with respect to Buyout-Buydown Costs

incurred by CIG.

CIG has also filed, in Docket Nos. RP89-178, TM90-4-32 and

TM90-5-32, to flow through the Buyout-Buydown Obligation assigned

to CIG by its former pipeline supplier, Northwest Pipeline

Corporation ("Northwest") and recover a portion of this obligation

from its jurisdictional customers. For the purpose of calculating

each customer's Purchase Deficiency, CIG utilized Northwest's Base

Period of Calendar Years 1982 and 1983 and a Deficiency Period of

Calendar Years 1984 through 1988. Pursuant to this calculation,

CIG has allocated $26,889, as adjusted, (Docket No. TM90-5-32) as

Transporter's fixed charge Buyout-Buydown Obligation with respect

to the Buyout-Buydown Obligation incurred by CIG from Northwest.