K N Wattenberg Transmission LLC

First Revised Volume No. 1

Effective Date: 01/01/1999, Docket: RP99-104-000, Status: Effective

First Revised Sheet No. 65 First Revised Sheet No. 65 : Effective

Superseding: Original Sheet No. 65

General Terms and Conditions - continued

21. GAS RESEARCH INSTITUTE CHARGE PROVISIONS

a. PURPOSE

Transporter has joined with other gas enterprises in the

formation of and participation in the activities and financing

of Gas Research Institute (GRI), an Illinois not for profit

corporation. GRI has been organized for the purpose of

sponsoring Research, Development and Demonstration (RD&D)

programs in the field of natural and manufactured gas for the

purpose of assisting all segments of the gas industry in

providing adequate, reliable, safe, economic and

environmentally acceptable gas service for the benefit of gas

consumers and the general public. The GRI Adjustment shall only

be applicable to payments to GRI for Program Funding Services

which are approved by the Commission.

For the purpose of funding of GRI's approved expenditures, this

Section establishes a GRI Adjustment Charge to be applicable to

Transporter's Rate Schedules FT and IT, as set forth on Sheet

No. 6 of this FERC Gas Tariff; provided however, such charge

shall not be applicable to Shippers which are Interstate

pipelines and which include in their rates a charge for RD&D

expenditures, or to Shipper which pay a charge for RD&D

expenditures to a third party in connection with third party

transportation of gas.

b. BASIS OF THE GRI ADJUSTMENT CHARGE

The Rate Schedules shall include an increment for a GRI

Adjustment Charge for RD&D. Such adjustment charge shall be

that increment, adjusted to Transporter's pressure base and

heating value, if required, which has been approved by FERC

orders approving GRI’s RD&D expenditures.

FILING PROCEDURE

The notice period and proposed effective date of filings

pursuant to this subsection shall be those permitted under

the FERC Regulations unless, for a good cause shown, a lesser

notice period and different effective date is allowed by

valid Commission order. Any such filing shall not become

effective without suspension or refund obligation.