Kansas Pipeline Company

Original Volume No. 1

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

Original Sheet No. 277 Original Sheet No. 277 : Superseded

GENERAL TERMS AND CONDITIONS (continued)

incurred by Kansas Pipeline Partnership or KansOk

Partnership for the transportation of gas by third

parties and the costs to buy out such contracts;

(2) "Stranded Transportation Cost Reservation

Surcharge" or "ST Reservation Surcharge" shall

mean the currently effective surcharge applicable

to service under any Firm Rate Schedule.

(3) "Section 17.5 Recovery Period" shall mean the

three (3) year period which shall commence on the

effective date of May 11, 1998.

(4) "Section 17.5 Reconciliation Recovery Period"

shall mean the twelve (12) months commencing on

the first day of the month following Commission

approval of Kansas Pipeline's Reconciliation

filing as provided for in Section 16.5(g).

(5) "Levelized Interest" shall mean the interest

amount resulting from the projected amortization

of the ST Costs over the Section 17.5 Recovery

Period in accordance with Section 154.501 of the

Commission's Regulations.

(d) Mechanism for Recovery of Stranded Transportation

Costs One hundred percent (100%) of Kansas

Pipeline's ST Costs, including Levelized Interest,

shall be recovered by means of the ST Reservation

Surcharge. The ST Reservation Surcharge shall be

stated on any Firm Rate Schedule of Kansas

Pipeline's FERC Gas Tariff, and shall become a part

of the stated rates for service provided under such

Rate Schedules.

On or before June 1 of each year during the Section

17.5 Recovery Period, Kansas Pipeline will file with

the Commission such updates as otherwise are required

by this Section 17.5 to the ST Reservation Surcharge

applicable to service under any firm Rate Schedule to be

effective on the immediately following July 1. Kansas

Pipeline will provide 30 days notice of such changes

to the ST Reservation Surcharge. The provisions of