K O Transmission Company

Original Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-421-000, Status: Effective

Third Revised Sheet No. 57 Third Revised Sheet No. 57 : Effective

Superseding: Second Revised Sheet No. 57

GENERAL TERMS AND CONDITIONS (continued)

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

4.7 Recall: Reassignment of Assigned Service Rights

(a)

Agreements Subject to Recall. Releasing Shippers shall be permitted

to specify as a condition for releasing capacity the right to recall

that assigned capacity upon notice to Transporter and to Replacement

Shipper. Any such recall provision must be included in the Release

Notice originally submitted by Releasing Shipper and in the

assignment agreement executed following assignment of the capacity.

The Release Notice and the assignment agreement governing the

assigned capacity shall clearly state (i) the frequency with which

Releasing Shipper may recall any released capacity, (ii) the maximum

duration of any such recall, (iii) the length of the advance notice

to Transporter and Replacement Shipper required before recall may be

effectuated, and (iv) whether and under what conditions any right of

first refusal held by Releasing Shipper is transferred to

Replacement Shipper, and (v) such other terms as Releasing Shipper

may specify.

Releasing Shipper also may provide in the Release Notice for self-

implementing recalls of the released capacity to be effected without

the participation of Transporter, where such self-implementing

recalls would be consistent with pipeline operations; provided that

Transporter has approved in advance the terms and conditions

applicable to that self-implementing release. Replacement Shipper

shall be permitted to make secondary

assignments of all or any part of the capacity contained in its

assignment agreement that is subject to Releasing Shipper's right to

recall, provided, however, that such assignments shall not vary the

recall provisions contained in the original assignment; provided,

moreover, that all recalls must comply with (b) below.

(b)

Agreements Not Subject to Recall. A Replacement Shipper that

desires to release some or all of its assigned capacity (Replacement

Shipper/Secondary Releasing Shipper) may release and reassign all or

a portion of the assigned capacity to other parties (Secondary

Replacement Shippers) if the original assignment is not subject to

recall by the original Releasing Shipper, as described in Section

4.7(a). Any such reassignment must satisfy all of the posting,

bidding and notice requirements set forth in this Section, and any

Secondary Replacement Shipper must satisfy all of the

creditworthiness and other requirements set forth in this Section.

No limitation unless prohibited by the Releasing Shipper shall be

placed on the number of times service rights that are not subject to

recall may be reassigned, provided however that a Replacement

Shipper/ Secondary Releasing Shipper may not assign rights any

greater than the rights it received pursuant to the earlier

assignment, and may not place any unreasonable or discriminatory

conditions on such assignments.

(c)

Assignment Agreements that call for payment by Shipper of a

volumetric rate may not be released and assigned.