K N Interstate Gas Transmission Co.

First Revised Volume No. 1-C

Effective Date: 12/02/1994, Docket: RP95- 35-000, Status: Effective

Original Sheet No. 8 Original Sheet No. 8 : Superseded

RATE SCHEDULE FT-BW - continued

3. SERVICE DEFINITIONS

3.1 FUEL REIMBURSEMENT QUANTITY.

a. The Fuel Reimbursement Quantity shall be the value of that

portion of Shipper's natural gas received by Transporter for

transportation which shall be retained by Transporter as

compensation for gas used in rendering service to Shipper,

including Company used gas, and lost and unaccounted for

gas. This gas shall be retained by Transporter reducing the

thermally equivalent volumes available for delivery to

Shipper. The Fuel Reimbursement Quantity shall be stated as

a percentage of the natural gas received by Transporter at

the Point(s) of Receipt.

b. Title to any Fuel Reimbursement Quantity shall vest in

Transporter upon receipt at the Receipt Point(s) at no cost

and free and clear of all adverse claims.

c. Any Fuel Reimbursement Quantity will be determined pursuant

to Section 15 of the General Terms and Conditions of the

FERC Gas Tariff.

3.2 MAXIMUM DAILY TRANSPORTATION QUANTITY. The Maximum Daily

Transportation Quantity (MDTQ) shall be the maximum quantity of

natural gas, in MMBtu, which Transporter agrees to deliver on any

day for the account of Shipper at all Delivery Point(s). Such

delivery points and such MDTQ shall be specified in the executed

Service Agreement.

3.3 PRIMARY RECEIPT POINT(S). Primary Receipt Points are those

receipt points from which the Shipper desires firm service and

which are set forth in the Service Agreement. The volume

specified for a Primary Receipt Point shall not exceed the

available firm capacity at that point.

3.4 SECONDARY RECEIPT POINT(S). A Shipper holding FT-BW Service may

nominate from any number of Secondary Receipt Points. The sum of

the nominated quantities at all Primary and Secondary Receipt

Points, less any Fuel Reimbursement Quantity and other deductions,

shall not exceed the Maximum Daily Transportation Quantity (MDTQ)

of the Agreement on any given day.