K N Interstate Gas Transmission Co.

First Revised Volume No. 1-D

Effective Date: 05/04/1995, Docket: RP95-272-000, Status: Effective

First Revised Sheet No. 40 First Revised Sheet No. 40 : Superseded

Superseding: Original Sheet No. 40

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

23.3 TERM OF RELEASED CAPACITY

a. TEMPORARY RELEASES. The term of any temporary release of

firm capacity shall not exceed the primary term of the

Service Agreement under which release is occurring.

Temporary releases for a period of one calendar month or

less, with a prearranged Shipper, do not have to be posted

for bidding.

b. PERMANENT RELEASES. The term of any permanent release of

firm capacity shall be equal to the remaining primary term

of the Service Agreement under which release is occurring.

The right of first refusal is released with the capacity.

c. AVAILABILITY OF RELEASED CAPACITY. Released capacity will

be available on a nondiscriminatory basis, pursuant to

Section 284.243 of the Commission's regulations, and will be

assigned on the basis of a bid period.

23.4 NOTICE BY PARTY ELECTING TO ACQUIRE CAPACITY

a. Parties desiring to acquire released capacity must submit an

electronic bid for released capacity through the electronic

bulletin board during the bid period.

b. Such bid must include:

(1) Shipper's legal name;

(2) The quantities to be acquired in daily and monthly

increments;

(3) The receipt and delivery point(s) and the capacity to

be acquired at each point;

(4) The desired effective date and term of the

acquisition;

(5) The fixed or volumetric reservation rate, not to

exceed the maximum applicable tariff reservation rate

plus any applicable surcharges that the party bids for

the released capacity;

(6) Whether bidder is willing to accept a quantity less

than that bid upon; and

(7) Any other conditions of the acquisition.