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Original Sheet No. 38 Original Sheet No. 38 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

23. VOLUNTARY REALLOCATION OF CAPACITY

23.1 APPLICABILITY

Any Shipper that holds firm capacity rights, under the FT-BW Rate

Schedule contained in Transporter's tariff, may elect to release,

subject to the firm capacity releasing program, all or a portion

of such firm capacity rights.

23.2 VOLUNTARY REALLOCATION RIGHTS

Shipper shall have the right to voluntarily reallocate all or a

part of its firm transportation capacity rights to any person who

wants to obtain that capacity by contracting with Transporter.

The acquiring Shipper must meet all tariff requirements for a new

customer. A Shipper, under this firm capacity releasing program,

is defined as either a primary or replacement Shipper. The firm

capacity releasing program allows all firm capacity holders to

permanently or temporarily release some or all of their capacity

through the pipeline.

a. NOTICE BY SHIPPER ELECTING TO RELEASE CAPACITY

A Shipper who elects to permanently or temporarily release

firm contract quantities shall post an offer to release

through the electronic bulletin board or submit the

following information in accordance with Section 20 of these

General Terms and Conditions for posting by Transporter. The

release information shall include the following:

(1) Shipper's contract number and legal name;

(2) an indication of permanent or temporary release;

(3) the specific daily contract quantity to be released

(no less than 100 MMBtu per day);

(4) the requested effective date of the release;

(5) the requested term of the release;

(6) the replacement Shipper name in a pre-arranged release

(if any);