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. 64 Original Sheet No. 64 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

g. In the event a Shipper's gas supplies are diverted to

another Shipper or retained by Transporter as a result of an

OFO, the party receiving such gas supplies shall compensate

the Shipper whose gas was diverted or retained at one

hundred percent (100%) of Transporter's cashout index price.

Should reduced deliveries result from the issuance of an

OFO, Transporter shall provide reservation charge credits to

Shippers reflecting such reduced deliveries.

28. OPERATIONAL BALANCING AGREEMENTS

28.1 GENERAL. Any imbalances arising under any transportation

agreement between Shipper and Transporter that are attributable to

variances (1) between actual receipts of natural gas and scheduled

and confirmed receipts of natural gas at Point(s) of Receipt into

Pipeline's system, or (2) between actual deliveries of natural gas

and scheduled and confirmed deliveries of natural gas at Point(s)

of Delivery from Transporter's system, which Point(s) of Receipt

and/or Point(s) of Delivery are subject to Operational Balancing

Agreements ("OBAs") as more fully described in Section 28.2 on the

day or days such variances arise, will be resolved pursuant to the

applicable OBA and Shipper will not be subject to any imbalance

charges or penalties pursuant to its transportation agreements

with Transporter for such imbalances.

28.2 TERMS GOVERNING. For the purpose of minimizing operational

conflicts between various natural gas facilities with respect to

the delivery of gas to and from Transporter's facilities,

Transporter is willing to negotiate and execute OBAs with

appropriate parties that operate natural gas facilities

interconnecting with Transporter's system (any such party will be

referred to herein as the "OBA Party"). Such OBAs shall specify

the gas custody transfer procedures to be followed by Transporter

and the OBA Party for the