Kinder Morgan Interstate Gas Transmission LLC

Second Revised Volume No. 1-C

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

Original Sheet No. 40 Original Sheet No. 40 : Superseded

RATE SCHEDULE IT-BW - continued

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.

c. 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 Point 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 ,Dth 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 receipts 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.