K N Interstate Gas Transmission Co.

First Revised Volume No. 1-D

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

Original Sheet No. 18 Original Sheet No. 18 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

8.2 At any receipt or delivery point, Transporter will allocate

available gas to Shippers:

a. Pro rata based on all nominations.

8.3 PREDETERMINED ALLOCATION AGREEMENTS. Transporter may enter into

mutually acceptable predetermined allocation agreements with

upstream or downstream parties to accommodate allocation

methodologies different than that outlined in Section 8.2.

8.4 OPERATIONAL BALANCING AGREEMENTS. Transporter will enter into

mutually acceptable operational balancing agreements with

upstream or downstream parties.

9. BILLING.

9.1 On or before the twentieth day of each month, Transporter shall

use reasonable efforts to render invoices for all charges

applicable to the preceding month. Invoices shall include any

applicable credits, including those relating to demand charges

for released capacity, if paid. When information necessary for

billing purposes is in the control of Shipper, such information

shall be delivered to Transporter by Shipper on or before the

fifth business day of each month for the prior monthly billing

period.

9.2 Both Transporter and Shipper shall have the right to examine, at

reasonable times, books, records and charts of the other to the

extent necessary to verify the accuracy of any statement, charge

or computation made under or pursuant to any of the provisions

hereof.

9.3 Transporter may invoice Shipper for additional charges which may

be applicable. Shipper shall pay Transporter such charges

within 10 days of the invoice date except where otherwise

specified in a the applicable Rate Schedule.

9.4 BILLING ERRORS. In the event an error is discovered in the

amount billed in any statement rendered by Transporter or paid

thereunder, such error shall be adjusted within thirty (30) days

of the determination, provided that claim shall have been made

within sixty (60) days from the date or discovery of such error,

but in any event within twelve (12) months from the date of any

such statement.