K O Transmission Company

Original Volume No. 1

Effective Date: 07/10/2004, Docket: RP00-394-003, Status: Effective

Second Revised Sheet No. 56 Second Revised Sheet No. 56 : Effective

Superseding: First Revised Sheet No. 56

GENERAL TERMS AND CONDITIONS (continued)

4. Release and Assignment of Service Rights (con't.)

4.5 Assignment Agreements

(a)

For all transactions effected pursuant to this Section, Transporter shall transmit

an Assignment Agreement reflecting the terms of the Release Notice to

Replacement Shipper following: (i) 5:00 p.m. (central clock time) on the day

bidding closes; or (ii) one hour after Releasing Shipper notifies Transporter of

an exempt transaction not subject to competitive bidding (by providing to

Transporter the information specified in Sections 4.1(b) and 4.2(b)). Replacement

Shipper may make a nomination at the beginning of the next available nomination

cycle. In the event Replacement Shipper has not executed the Assignment

Agreement prior to making a nomination, Replacement Shipper shall be deemed

to have executed Transporter's pro-forma Assignment Agreement.

(b)

Transporter and Replacement Shipper shall execute the Assignment Agreement

in substantially the form contained in this Tariff. The Assignment Agreement

shall contain all terms and conditions of the release and assignment; provided

that such terms and conditions are identical to those set forth in the underlying

Release Notice.

All Assignees must appear on Transporter's Approved Bidders List. If the

Replacement Shipper does not return such agreement within twenty-four (24) hours of

Transporter's tender (or such date or time established by Releasing Shipper through

notice to Transporter and Replacement Shipper), the bid and Transporter's offer of a

Service Agreement shall be void and Transporter shall tender an Assignment Agreement

to the next highest acceptable bidder, if any, consistent with the terms of the

Release Notice.

4.6 Implementation: Receipt and Delivery Points

Following acceptance of a bid for assignment,Transporter will accept nominations or

requests for alternate receipt or delivery points for the assigned capacity.

Replacement Shippers may submit nominations to Transporter in the next available

nomination cycle. Replacement Shippers may not however exercise flexible receipt or

delivery point authority at primary points unless such exercise is agreed to in

writing by Releasing Shipper. Quantities flowing under assigned service rights shall

have the same priority as those quantities had under the applicable underlying

service agreement originally entered into by Releasing Shipper and Transporter, and

that priority shall be unaffected by whether or not the assignment is subject to

recall, as described below.