K O Transmission Company

Original Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-394-002, Status: Effective

Substitute Second Revised Sheet No. 59 Substitute Second Revised Sheet No. 59

Superseding: First Revised Sheet No. 59

GENERAL TERMS AND CONDITIONS (continued)

4. Release and Assignment of Service Rights (continued)

Any reservation charge payments made by Replacement Shipper to Transporter

will not be withheld from Releasing Shipper by Transporter due to Replacement

Shipper's failure to pay Transporter other amounts owed that are unrelated to

the released capacity.

(c)

In the event that a Replacement Shipper (including a Secondary Replacement

Shipper) fails to pay Transporter's invoice relating to the released capacity,

Transporter shall within five (5) business days provide the Releasing Shipper

(the most recent Releasing Shipper, where the capacity has been secondarily

assigned) with written or telephonic notice of such nonpayment. Upon

Releasing Shipper's receipt of such notice of Replacement Shipper's

nonpayment. Releasing Shipper, without prejudice to any other rights it may

have, may immediately recall the assigned capacity upon twenty-four (24) hour

notice to Replacement Shipper unless within such period Replacement Shipper

pays in full the outstanding indebtedness, together with accrued interest at

the Commission-approved interest rate, and furnishes adequate assurance of

payment to Releasing Shipper if required by Releasing Shipper.

4.9 Refunds

(a)

For all refunds other than those described at paragraph (b) below, the

original Releasing Shipper of any capacity shall receive from Transporter any

reservation charge-related refunds associated with the assigned capacity. The

Replacement Shipper holding the assigned right to service at the time of the

overpayment shall receive from Transporter its share of any commodity

charge-related refunds associated with the assigned capacity. Refunds owed by

Transporter will be made by Transporter directly to Replacement Shipper, or

indirectly through the Releasing Shipper if Replacement Shipper has appointed

Releasing Shipper as its agent for billings pursuant to the Section above.

(b)

The refund obligation of Transporter set forth in paragraph (a) shall be

modified where Releasing Shipper has released capacity at a rate in excess of

that owed by Releasing Shipper to Transporter for that capacity ("Releasing

Shipper's Margin"). To the extent that Releasing Shipper's margin equals or

exceeds the amount of any refund obligation, Transporter shall not be

obligated to make refunds to Releasing Shipper. (Any refunds ultimately paid

to a Replacement Shipper in that event shall be paid by Releasing Shipper.)

4.10 Fees

Transporter shall not charge a fee for posting of a Release Notice or a

Request to Purchase on its website. Transporter shall be entitled to charge a

reasonable fee if Releasing Shipper and Transporter agree that Transporter

shall receive a fee for actively marketing the capacity Releasing Shipper

seeks to release.