K O Transmission Company

Original Volume No. 1

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

Third Revised Sheet No. 97 Third Revised Sheet No. 97

Superseding: Second Revised Sheet No. 97

GENERAL TERMS AND CONDITIONS (continued)

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

(b)

Allocations. If confirming parties cannot agree on an allocation methodology,

"pro rata based upon confirmed nominations" shall be used as the default

method. Types of allocation methods include, but are not limited to, Ranked,

Pro Rata, Percentage and Swing. Month-end allocations shall be based on a

measurement closing date of the fifth business day after the business month.

If actual quantities are not available, quantities will be estimated by

Transporter. Disputed allocations shall be communicated to Transporter within

six months of the initial month-end allocation, with a three month rebuttal.

This time limitation shall not apply in the case of deliberate omission or

misrepresentation, or mutual mistake of fact. No party's other statutory or

contractual rights are affected by this provision.

(c)

Prior Period Adjustments. Prior period measurement adjustments will be taken

back to the production month and reflected as such on invoices, imbalance

statements and allocation statements. Measurement corrections shall be

processed within six months of the end of the flow month, with a three month

rebuttal period. This time limitation shall not apply in the case of

deliberate omission or misrepresentation, or mutual mistake of fact. No

party's other statutory or contractual rights are affected by this provision.

12.4 Shipper's Notice of Changes

Except for reasons of force majeure, as described in Section 18 (Force Majeure

and Curtailment) of the Tariff's General Terms and Conditions, Shipper shall

notify Transporter or cause Transporter to be notified at least 24 hours in

advance of any anticipated material change in the daily quantity of gas

Shipper desires to deliver or cause to be delivered to Transporter for

transportation under Transporter's Rate Schedules. If an unanticipated or

force majeure event causes a material change in the quantity of gas Shipper

will deliver or cause to be delivered to Transporter for transportation,

Shipper shall notify or cause Transporter to be notified as soon as possible

after occurrence of that event. In the event of such material changes, Shipper

shall tender or cause to be tendered to Transporter such estimated daily

quantities at flow rates as close as possible to uniform hourly rates.

Departures by Shipper from the daily quantities that it has notified

Transporter it intends to tender to Transporter under a Rate Schedule shall be

kept to a minimum and in no event shall exceed the amount permitted by

operating conditions.

12.5 Monitoring

(a) Transporter may monitor: (i) the daily tenders of gas by or on behalf of

any Shipper; (ii) the quantities delivered by an Intermediate Transporter on

behalf of Shipper; and (iii) the daily usage of gas by Shipper. Transporter

may do so for the purpose of monitoring on an hourly, daily, weekly, or

monthly basis the quantities being tendered to and delivered by Transporter

and thereby maintain, as nearly as possible, a concurrent balance between

receipts and deliveries of gas. The approximate quantities determined by

Transporter in that monitoring process shall be referred to herein as

Monitored Quantities.

(b) Monitoring may be performed by Transporter using either the estimates or

actual data received by Transporter pursuant to this Section or actual meter

readings by Transporter. Transporter may make reasonable adjustments to

Shipper's Scheduled Daily Delivery Quantity and Scheduled Daily Receipt

Quantity based upon either the Monitored Quantities or the actual data

received by Transporter pursuant to the provisions of this Section.

Transporter may make such adjustments upon telephonic notice to