K O Transmission Company

Original Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-394-000, Status: Effective

Second Revised Sheet No. 107 Second Revised Sheet No. 107

Superseding: First Revised Sheet No. 107

GENERAL TERMS AND CONDITIONS (continued)

17. Non-Emergency Service Interruption (con’t.)

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 Customer's 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).

(2) Where Shippers have requested deliveries in excess of available capacity

and commencing other than on the first Day of the Month of quantities under the

ITS Rate Schedule or overrun quantities under the FTS Rate Schedule, Transporter

shall allocate any available capacity on the basis of the highest rate. Where

requested deliveries at the same highest rate exceed available capacity,

Transporter shall allocate capacity first to those Shippers flowing gas on a

pro rata basis, based upon respective confirmed nominations; and second to all

remaining Shippers based upon the order in which Transporter received

nominations from those Shippers (equally to any Shippers submitting nominations

on the same day).

Transporter shall allocate any available 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 who are currently flowing gas (on a pro rata basis

based on each Shipper's quantities flowing on the current day, up to but not

exceeding such flowing quantities); and

b) second to those Shippers who were not flowing gas during the current day (on

a pro rata basis based upon the order in which Transporter received nominations

from those Shippers for service during the current day).