Kansas Pipeline Company

Original Volume No. 1

Effective Date: 05/11/1998, Docket: CP96-152-009, Status: Effective

Original Sheet No. 269 Original Sheet No. 269 : Superseded

GENERAL TERMS AND CONDITIONS (continued)

Surcharge will become effective twelve (12)

months after the effective date of the rate

filing to establish the Initial GSR

Cost Collection Period or subsequent adjustment

to the GSR Reservation Surcharge. At least

thirty (30) Days prior to the effective date

of the annual adjustment to the GSR Cost

Reservation Surcharge, Kansas Pipeline shall

file with the Federal Energy Regulatory

Commission and post, as defined in Section __

of the Commission's Regulations, Tariff Sheet

Nos. 15 through 25 and Tariff Sheet No. 28

Through 33, together with supporting

computations.

(e) GSR Cost Exit Fee

If at any time prior to the conclusion of the

Initial Gas Supply Realignment Cost Collection

Period or any Carryover Gas Supply Realignment Cost

Collection Period, a Shipper under a firm Service

Agreement affected by this Section 17.3 requests

a modification to the Service Agreement to reduce

the MDCQ or requests a termination of the Service

Agreement and if Kansas Pipeline agrees to such

reduction or termination, then the affected Shipper

shall immediately become obligated to Kansas

Pipeline for the GSR Cost Exit Fee. The

Gas Supply Realignment Cost Exit Fee shall

equal the amount which would have been collected

during the remainder of the Initial or the

Carryover Cost Collection Period, as applicable,

of this Section 17.6 at the level of firm service

applicable to such Shipper at the effective date

hereof, or the effective date of the Service

Agreement whichever is later. Kansas Pipeline

will invoice such amount to the affected Shipper

in a direct bill within thirty (30) days after the

termination or reduction in firm service rights.

Invoices pursuant to this Section 16.6(e),

including carrying charges calculated in accordance

with Section 154.501 of the Commission's Regulations

shall be due and payable within ten

(10) days of the issuance of such invoices.