Kansas Pipeline Company

Original Volume No. 1

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

Original Sheet No. 250B Original Sheet No. 250B : Effective

GENERAL TERMS AND CONDITIONS (Continued)

(iv) In order for Shippers to trade and/or net their

imbalances, they must complete and submit to

Kansas Pipeline the appropriate Monthly Imbalance

Netting and Trading Forms, as specified by Kansas

Pipeline on such forms. Form No. 2

shall be used by the Shipper (the

initiating trader), for transactions

relative to netting imbalances across its own

transportation contract. Form No. 3 shall be used

by the Shipper (the initiating trader), for

transactions relative to trading imbalances with

other Shippers (the confirming trader). Kansas

Pipeline must receive such completed

form prior to the seventeenth (17) business day

of the month. In order for imbalances to

be netted or traded, the imbalances must occur

within the same production month and same

Operational Impact Area for which the original

imbalance occurred, and must not have an adverse

impact upon Kansas Pipeline's system.

(v) Shippers can withdraw its imbalance trades by

using the Imbalance Trading and Netting Form No.

4, as long as this form is received by

Kansas Pipeline prior to the confirming trader's

confirmation of the trade. Imbalance trades are

considered final when confirmed by the confirming

trader and effectuated by the Kansas Pipeline.

After receipt of an Imbalance Trade Confirmation,

Kansas Pipeline shall send the Imbalance Trade

Notification to the initiating trader and the

confirming trader no later than noon CCT the next

business day.

(vi) After the seventeenth (17) business day of the

month Kansas Pipeline shall adjust the preceding

month's imbalance to reflect the quantities traded

and/or netted. No additional charges to the