Kansas Pipeline Company

Original Volume No. 1

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

Original Sheet No. 272 Original Sheet No. 272 : Superseded

GENERAL TERMS AND CONDITIONS (continued)

and transportation imbalances. If the balance of

Kansas Pipeline Partnership's Unrecovered

Purchased Gas Account shall be a credit balance, or

Kansas Pipeline later receives refunds from its

suppliers for services provided prior to the

effectiveness of this Section 17.4, Kansas Pipeline

shall refund a proportionate share of such balance

or refunds to the Buyers affected hereunder.

(c) Amount of Direct Bills and Refund

The amount of the Direct Bill and Refunds to any Buyer

shall consist of a Deferred Account Component, as

described in Section 17.4(d) hereof, and a prior

Period Adjustment Component, as described in Section

17.4(e) hereof. Each component shall reflect demand

and commodity charges, as may be appropriate.

(d) Calculation of the Deferred Account Component

(1) The Deferred Account Component of Buyer's Direct

Bill shall be computed for each Buyer by adding

Buyer's proportionate share of Kansas Pipeline's

commodity, including carrying charges, deferred

account balance to Buyer's proportionate share

of Kansas Pipeline's demand, including carrying

charges, deferred account balance.

(2) Buyer's proportionate share of Kansas Pipeline's

commodity deferred account balance shall be

determined by multiplying the total commodity

deferred account balance, whether the same shall

be a debit or credit, on the day prior to the

effective date of this Section 17.4, by a fraction

consisting of the amount of Kansas Pipeline's

commodity sales volumes to Buyer during the

twelve months prior to the effectiveness of this

Section 17.4 as the numerator and Kansas

Pipeline's total Buyer's commodity sales volumes

during the same period as the denominator.