Kansas Pipeline Company

Original Volume No. 1

Effective Date: 05/11/1998, Docket: CP96-152-015, Status: Effective

First Revised Sheet No. 260 First Revised Sheet No. 260 : Effective

Superseding: Original Sheet No. 260

GENERAL TERMS AND CONDITIONS (continued)

15. UPSTREAM SERVICE RIGHTS

This section sets forth the terms and conditions under

which Kansas Pipeline will make available capacity

retained under that certain Amended and Restated Agreement

of Lease between KansOk Partnership and Transok, Inc. dated

April 24, 1992, including all exhibits and amendments

Thereto ("Transok Lease"). This provision is designed to

Reflect the Commission's open access policies. This provision

shall not apply to the extent the Transok Lease is assigned

directly to any Shipper.

15.1 Shippers nominating gas for delivery under the Transok

Lease shall be subject to all terms and conditions on

the Lease and shall be responsible for all imbalances

and for the payment of all penalties and charges

incurred. Shipper shall pay Kansas Pipeline the actual

transportation costs incurred by Kansas Pipeline under

the terms of the Transok Lease to deliver gas from

specific Receipt Point(s) nominated by such Shipper

on Transok's system.

The rates for Zone 1, as reflected herein, include costs

associated with the Transok Lease (Kansok Partnership,

Docket No. PR94-3-000). The Lease's annual minimum cost

is calculated and fixed on a monthly basis. Each month,

the minimum cost is offset by the actual cost of gas

transported under the Lease. Actual costs are calculated

on a per dekatherm basis pursuant to rates set forth in the

Lease by specific receipt point. Revenues in excess of the

monthly minimum rate requirement are paid to Transok when

actual transportation costs are greater than the required

monthly minimum payment. Shipper shall reimburse Kansas

Pipeline for actual costs incurred by the pipeline in excess

of the costs reflected in the Zone 1 rate. The following

example demonstrates the monthly calculation: Assuming (i)

the annual minimum cost is one million dollars; and (ii) the

firm transportation in Zone 1 is held by two firm shippers,

one holding 51.23% of the firm capacity and one holding 48.77%

of the firm capacity, the minimum monthly payments due Transok

by Kansas Pipeline would be as follows: