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. 264 Sub First Revised Sheet No. 264 : Effective

Superseding: Original Sheet No. 264

GENERAL TERMS AND CONDITIONS (continued)

16.3 Refunds

Refunds due Shipper pursuant to the terms of this

tariff or orders of the Commission shall be paid by

Electronic Funds Transfer to a bank account

established by Shipper if:

(a) Shipper has transmitted payment for services to

Kansas Pipeline by Electronic Funds Transfer

within the Twelve (12) Month period preceding

the date of the refunds; and

(b) Shipper has designated in writing a bank account

for the receipt of Electronic Funds Transfers at

least Thirty (30) Days prior to the date

established for refunds; and

(c) The amount of the refund, including interest,

equals or exceeds $100,000.

Refunds not paid by Electronic Funds Transfer

shall be paid by check.

17. PERIODIC RATE ADJUSTMENTS AND SURCHARGES

17.1 Periodically rates and charges under Kansas Pipeline's

Tariff shall be adjusted to reflect changes in Kansas

Pipeline's expenditures, an example of which is the

Annual Charge Adjustment.