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. 132 First Revised Sheet No. 132 : Effective

Superseding: Original Sheet No. 132

GENERAL TERMS AND CONDITIONS (continued)

24. Transportation Retainage Adjustment

Shipper must furnish the sufficient quantity of gas required for fuel,

company use and unaccounted for quantities associated with the rendering of

applicable service. That quantity of gas required for retainage shall be

calculated as an amount equal to the quantity of gas tendered for

Shipper on a daily basis multiplied by the applicable percentage as stated in

Sheet No. 10 of this Tariff. Transporter will adjust the fuel retainage as operating

conditions warrant.

Such changes will (a) be made with prior written notice and (b) shall not be

assessed to Shipper retroactively. Retainage, as defined at Section 1 of the

General Terms and Conditions, shall apply to all Rate Schedules of this Tariff.