Kansas Pipeline Company

Original Volume No. 1

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

Original Sheet No. 274 Original Sheet No. 274 : Superseded

GENERAL TERMS AND CONDITIONS (continued)

(4) Carrying charges on all such amounts shall be

calculated using the methods specified in Section

154.501 of the Commission's Regulations.

(f) Nature of Obligations

(1) The entire amount of Buyer's obligation to Kansas

Pipeline as described in this Section 16.4,

including its subsections, shall be deemed to be

due on the day prior to the date this Section

becomes effective.

(2) Kansas Pipeline shall invoice the Buyer for the

Direct Bill component hereunder on or after the

tenth day of the month following the Commission's

approval of Kansas Pipeline's disposition of its

unrecovered purchased gas cost amounts. The entire

amount of each Buyer's unrecovered purchased gas

cost Direct Bill Amount shall be payable ten (10)

days thereafter.

Buyer shall pay Kansas Pipeline by electronic

funds transfer to a designated bank account

established by Kansas Pipeline for amounts equal

to or greater than $100,000. For amounts less

than $100,000, Buyer shall pay Kansas Pipeline by

check to Kansas Pipeline's designated office or at

Buyer's election by electronic funds transfer to a

designated bank account established by Kansas

Pipeline. Buyer shall pay Kansas Pipeline, at its

designated office, on or before the tenth day after

such billing the full amount so invoiced. Should

Buyer fail to pay any amount which shall become due

hereunder interest thereon shall accrue at the rate

computed using the factors specified in Section

154.501 of the Commission's Regulations, until such

time as the full amount due has been paid or

collected.