K O Transmission Company

Original Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-339-000, Status: Effective

First Revised Sheet No. 103 First Revised Sheet No. 103 : Effective

Superseding: Original Sheet No. 103

GENERAL TERMS AND CONDITIONS (continued)

15. Possession of Gas

After Shipper delivers gas, or causes gas to be delivered, to Transporter at the

point(s) of receipt specified in the Service Agreement, Transporter shall be

deemed to be in possession and control of the gas until thermally equivalent

volumes of comparable Btu value (less Retainage) are redelivered to Shipper or

for the account of Shipper at the point(s) of delivery. Shipper shall

have no responsibility with respect to any gas deliverable by Transporter

or on account of anything which may be done, happen or arise with respect

to such gas until Transporter delivers such gas to Shipper or for the

account of Shipper. Transporter shall have no responsibility with respect

to such gas before Shipper delivers or causes such gas to be delivered

to Transporter or after Transporter redelivers such gas to Shipper or

for the account of Shipper, or on account of anything which may be done,

happen or arise with respect to such gas before such delivery or after

such redelivery.