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. 56 Original Sheet No. 56 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

b. Transporter will make filings to be effective commencing one

(1) month after Commission authorization in a Section 4

proceeding, and quarterly thereafter, to recover any Gas

Supply Realignment Costs actually incurred and booked by the

end of the quarter preceding the filing and which are known

and measurable with reasonable accuracy, plus carrying

charges calculated on the net outstanding balance (i.e.,

after Gas Supply Realignment revenues are received and

credited) from the date of incurrence of such Gas Supply

Realignment Costs to the projected date of payment as

determined pursuant to Section 154.305 of the Commission's

regulations; provided, however, that on and after the date

of the credit calculated pursuant to Section 26.3e. carrying

charges shall be computed on the net outstanding balance.

(1) Ninety percent (90%) of such Gas Supply Realignment

Costs shall be allocated to Shippers under Rate

Schedules FT and NNS, pursuant to Order No. 636, pro

rata based on the ratio of the Shipper's aggregate MDQ

to the total aggregate MDQ under Rate Schedules FT and

NNS effective as of the date of Transporter's GSR

surcharge filings and adjusted as necessary during

that recovery period to reflect any changes in

Shipper's MDQ, and recovered from such Shippers under

Rate Schedules FT and NNS by means of a GSR Demand

Surcharge per MDQ. Allocation of Gas Supply

Realignment Costs shall not be reduced for any Shipper

by virtue of any discounted FT or NSS services

commencing after the implementation date. Shippers

under Rate Schedules FT and NNS taking assignment of

gas supply contracts from Transporter shall be

excluded from the allocation of Gas Supply Realignment

Costs as calculated pursuant to Section 26.3.