Kansas Pipeline Company

Original Volume No. 1

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Effective Date: 05/11/1998, Docket: CP96-152-022, Status: Effective

Sub First Revised Sheet No. 247 Sub First Revised Sheet No. 247 : Effective

Superseding: Original Sheet No. 247

GENERAL TERMS AND CONDITIONS (Continued)

Kansas Pipeline may issue any other operational

flow order it deems necessary to protect the

integrity of its system. On any occasion when

Kansas Pipeline issues an operational flow order

under this subsection, pursuant to Section 12.12

herein, Kansas Pipeline will post on the IEC System

a detailed description of the situation which

necessitated the issuance of that particular

operational flow order.

12.12(b) The charge for variances beyond the tolerance

levels as stated in the OFO shall be:

(1) the greater of $5 or two times the daily spot

price as defined in Section 1.6 for each Dt

which exceeds authorized delivery levels by more

than 3% through 10%

(2) the greater of $10 or three times the daily spot

price as defined in Section 1.6 for each Dt

which exceeds authorized delivery levels by more

than 10% through 15%

(3) the greater of $15 or four times the daily spot

price as defined in Section 1.6 for each Dt

which exceeds authorized delivery levels by more

than 15%

In the event that Kansas Pipeline is unable to provide shippers

twenty-four (24) hours notice of an OFO, Kansas Pipeline shall

waive OFO penalties only on the first day of issuance of an OFO.

12.13 Extreme Condition

When Kansas Pipeline declares an extreme condition situation as

to any portion of its system, the daily scheduling tolerance

level for that portion of its system shall be reduced from 5%

to 3% and the charge for variances beyond the reduced tolerance

level shall be:

(a) the greater of $5 or two times the daily spot price as

defined in Section 1.6 for each Dt which exceeds

authorized delivery levels by more than 3% through 10%

(b) the greater of $10 or three times the daily spot price as

defined in Section 1.6 for each Dt which exceeds authorized

delivery levels by more than 10% through 15%