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. 71 Original Sheet No. 71 : Effective

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

32. OWNERSHIP OF LIQUIDS/PROCESSING RIGHTS

Shippers have the right to process their own gas, or have their gas

processed by a third party, unless otherwise provided by contract.

Transporter recognizes Shipper's ownership rights to products removed

from the gas. If gas is processed by Transporter, absent any other

agreement, the Shipper will receive credit for extracted products based

on allocated volumes and compositions at applicable receipt points to

Transporter's transmission system, as follows: 98% of residue gas, 50%

of net hydrocarbon liquids proceeds, and 20% of net helium proceeds.

Transporter will individually negotiate on a non-discriminatory basis

other processing arrangements with Shippers. If Transporter has

Shipper's gas processed through a third party plant, and Shipper does

not have a processing agreement with the third party plant, Transporter

will pass through to Shipper all residue gas and net liquids proceeds

received from the third party processor.

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