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. 59 Original Sheet No. 59 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

c. Within sixty (60) days from each twelve (12) month period

following the implementation date, Transporter shall file a

statement with the Commission reflecting:

(1) The aggregate amount of Gas Supply Realignment Costs

incurred and allocated to be collected during the

previous twelve (12) month period from Rate Schedule

IT, as determined pursuant to Section 26.3 d.;

(2) The aggregate amount of Gas Supply Realignment Costs

deemed collected during the previous twelve (12) month

period by Transporter under Rate Schedule IT as

determined pursuant to Section 26.3 d.

Transporter shall have the option at any time after twelve

(12) months from the initial implementation of the GSR

surcharge to file to recover any Gas Supply Realignment

Costs unrecovered through its Rate Schedule IT rates through

an alternate mechanism.

d. To determine pursuant to Section 26.3 c.(2) whether

Transporter has recovered Gas Supply Realignment Costs

pursuant to Rate Schedule IT, Transporter shall compare

total IT revenues during the initial twelve (12) month

period of the GSR surcharge against the cost of service

allocated to be recovered from Rate Schedule IT excluding

Gas Supply Realignment Costs. To the extent such revenue

exceeds such cost of service allocation, excluding Gas

Supply Realignment Cost, Transporter shall consider such

excess revenue, less applicable surcharges and variable

costs incurred in providing the service, to be recovery of

the Gas Supply Realignment Costs allocated to Rate Schedule

IT for such period. Ninety percent (90%) of any additional

excess revenue, less applicable surcharges and variable

costs incurred in providing the service, shall also be

considered recovery of Gas Supply Realignment Costs and

shall be credited against future Gas Supply Realignment

Costs. Transporter shall retain the remaining ten percent

(10%) of such excess revenue without any refund obligation.