Quest Pipelines (Kpc)

Second Revised Volume No. 1

Effective Date: 02/01/2008, Docket: RP08-174-000, Status: Effective

Original Sheet No. 122 Original Sheet No. 122 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

7.1 Order For Accommodating Firm Service Rights

(a) Subject to the provisions of Section 7.2 hereof, as firm

capacity becomes available for Transportation, requests for

firm services shall be fulfilled first, commencing with the

requested service offering the greatest economic value for

the capacity available. If the economic values, as

determined below, of separate service requests are equal,

then service shall be offered in sequence starting with the

request for such service with the earliest date. If

separate service requests have equal economic values and the

same date of request, service shall be offered to such

requests on a pro rata basis.

(b) The economic value of request(s) for service rights shall be

the net present value of the reservation charges, capacity

charges and deliverability charges that Shipper would pay at

the rates Shipper has requested, which shall not be less

than the minimum nor greater than the maximum rates as

stated on the currently effective Tariff Sheet governing

such service, over the term of service specified in the

request(s), utilizing as the annual discount factor the

overall rate of return underlying KPC's currently effective

rates.

available on a particular segment of KPC's system, KPC shall

tender Service Agreements to potential Shipper(s) whose

request(s) for firm service can be accommodated through the

capacity that becomes available in accordance with the order

established under Section 7.1(a).

If KPC tenders a Service Agreement, but does not receive the

executed Service Agreement within 30 Days from the date the

Service Agreement is sent, the request for service rights

shall expire without prejudice to the prospective Shipper's

right to submit a new request for service rights. In the

event the prospective Shipper returns a Service Agreement

with a rate less than that used to determine the economic