Kinder Morgan Interstate Gas Transmission LLC

Second Revised Volume No. 1-C

Effective Date: 12/28/1999, Docket: GT00- 19-000, Status: Effective

Original Sheet No. 14 Original Sheet No. 14 : Superseded

RATE SCHEDULE FT-BW - continued

desire for Transporter to offset the imbalances. After

receiving notices from both trading parties, Transporter

will reflect the trade by posting adjusted imbalances on

DART.

(3) At the end of the trading period, Transporter

will charge for, or credit for, any remaining

imbalance according to the Schedule below:

Imbalance as Rate as a % of Average Market Index*

% of Actual Deliveries KMIGT Charge KMIGT Credit

0 to 3% 100% 100%

Over 3% - less than 5% 105% 95%

5% - less than 10% 110% 90%

10% - less than 20% 120% 80%

20% or more 130% 70%

* Average of the first of the month index and

the mid-point of the aftermarket range for ANR, El

Paso, NGPL, NorAm, PEPL, Transwestern, and WNG as

reported by "Inside FERC Gas Market Report", for the

month in which the imbalance occurred.

e. DAILY VARIANCE CHARGE.

(1) If the sum of actual receipts at all physical

Receipt Points under the Service Agreement

varies from the aggregate Approved Daily

Nomination at such Receipt Points or the sum

of all deliveries at all physical delivery

points varies from the aggregate Approved Daily

Nomination at such Delivery Points by 7% or 50

MMBtu, whichever is greater (hereinafter called

the Tolerance Level), a Daily Variance Charge

shall be assessed. The Daily Variance Charge

shall be applied to each Service Agreement

with respect to which actual receipt or

deliveries vary from the aggregate Approved

Daily Nomination in excess of the Tolerance

Level. The Daily Variance Charge shall be

$0.09 per Dth for each Dth of receipts or

deliveries in excess of the Tolerance Level, on

a daily basis.