Kansas Pipeline Company

Original Volume No. 1

Effective Date: 11/01/2000, Docket: RP01- 6-001, Status: Effective

Second Revised Sheet No. 250 Second Revised Sheet No. 250 : Effective

Superseding: First Revised Sheet No. 250

GENERAL TERMS AND CONDITIONS (Continued)

12.16 Unauthorized Overrun Receipts

Kansas Pipeline shall notify Shipper of excess

receipts in order to permit Shipper to reduce receipt

quantities. If the excess receipts continue and such

receipts jeopardize The safety of the Kansas Pipeline

system or Kansas Pipeline's ability to serve other

Shippers, Kansas Pipeline shall be entitled to refuse

to accept such excess receipts. If, despite such

refusal the excess receipts continue all further

excess receipts as to which notice has been given shall

be treated as excess receipts under Section 12.11(a)

with a percentage imbalance level greater than 20%.

12.17 Imbalance Trading and Netting Procedures

To the extent that a Shipper has not been notified by

Kansas Pipeline that its imbalances are creating an

operational problem on its system, and that the

continuation of such imbalance is endangering service

to other Shippers, Kansas Pipeline shall notify and

post in accordance with the provisions set forth in

this section, the total imbalance quantity including

the portion thereof that is equal to or greater than

the MAIQ for netting and/or trading. Shipper

shall have until the end of the period specified in

this section to eliminate its imbalance with no further

penalty. If Shipper does not eliminate such imbalance

by the end of such period, or has been notified by

Pipeline that its imbalance is creating an operation

problem, such imbalance shall be Cashed-out pursuant

to the provisions set forth in Sections 12.11(a)(1)(i)

and 12.11(a)(2)(i) hereof.

(i) On or before the ninth (9th) business day of each

month, Kansas Pipeline shall send Shipper a

statement detailing the unresolved imbalance volume

for the previous month within each Service

Agreement. Shippers may correct monthly imbalances,

until the close of business on the seventeenth (17)

business day of each month, by trading imbalances

with other Shippers, or by netting imbalances

created under its own transportation contracts.