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. 57 Original Sheet No. 57 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

(a) Transporter shall render a bill for the entire

amount of each Shipper's GSR Demand Surcharge

Amount with respect to any quarterly filing on

or after the tenth day of the month following

the effective date of the filing. Such amount

shall be payable in three (3) consecutive

monthly installments equal to one-third (1/3 )of

such amount on each date following submission of

such bill on which payment is payable.

(b) Each Shipper shall have the option, in lieu of

payment of such GSR Demand Surcharge in three

installments, of paying twelve (12)consecutive

monthly installments equal to 1/12th of such

amount. Additional carrying charges on such

amount shall be calculated and included on each

monthly bill for those Shippers electing the

twelve (12) month payment option. Monthly

amounts shall be payable on the 20th of each

month following submission of the bill referred

to in paragraph (a). Any Shipper may, at any

time, pay all or a portion of its unpaid GSR

Demand Surcharge Amount and in such event its

obligation for carrying charges shall be

applicable only to amounts unpaid.

Carrying charges on unpaid principal amounts for

those Shippers electing to extend their payment

hereunder shall be determined using the methods

specified in Section 154.305 of the

Commissions's Regulations.

(c) Should Shipper fail to pay any amount on the

date due hereunder, additional interest thereon

shall accrue at the rate computed using the

factors specified in Section 154.305 of the

Commissions's Regulations, until such time as

the full amount due has been paid or collected.