K O Transmission Company

Original Volume No. 1

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Effective Date: 11/01/2010, Docket: RP10-1231-000, Status: Pending

Fourth Revised Sheet No. 96 Fourth Revised Sheet No. 96

Superseding: Third Revised Sheet No. 96

GENERAL TERMS AND CONDITIONS (continued)

12. Nominating, Scheduling and Monitoring (con't.)

Transporter shall award capacity first to the Shippers paying the applicable

maximum rate under Rate Schedule ITS. In situations where Shippers are paying

less than the applicable maximum rate, Transporter shall allocate the

remaining capacity based on the rate paid from the highest rate to the lowest

rate. Among Shippers paying the same rate, Transporter shall allocate

capacity: a) first to those Shippers flowing gas during the previous month (on

a pro rata basis based on each Shipper's quantities flowing on the fourth

business day preceding the first day of that month, up to but not exceeding

such flowing quantities); and b) second to those Shippers who were not flowing

gas during the previous month (on a pro rata basis based on nominated

quantities for service during the upcoming month, up to but not exceeding

nominated quantities).