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Original Sheet No. 43 Original Sheet No. 43 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

b. ABILITY TO WITHDRAW RELEASED CAPACITY BID. Bids for

released capacity may be withdrawn at any time before the

end of the bid period. Once a bid has been withdrawn on a

release, the bidder may not submit a bid at a lower rate,

although he may do so at a higher rate.

c. ABILITY TO MAKE CONDITIONED BIDS. Conditioned bids will be

allowed if the releasing Shipper has indicated its

willingness to accept condition(s) in the release.

23.7 POSTING AND ALLOCATION OF RELEASED CAPACITY

a. All capacity will be posted on Transporter's electronic

bulletin board. The information listed in Section 23.2(a)

will be posted except for the releasing Shipper's contract

number and legal name and the replacement Shipper's name.

Bids for the capacity will be made through the bulletin

board and Transporter will allocate released capacity to the

person offering the highest rate, not to exceed the maximum

tariff reservation rate that Transporter can charge the

releasing shipper and offering to meet all other terms and

conditions of the release. If more than one person offers

the highest rate and meets the terms and conditions of the

release, the released capacity will be given to the Shipper

delivering the earliest bid to Transporter (date and time

received by Transporter). Released capacity will be

allocated by lottery among the requesting Shippers in the

event requests are received at the same time, provided

however, if the replacement Shipper designated in a

prearranged deal offers the highest rate, the capacity will

be allocated to the designated replacement Shipper.

Transporter will not refuse to provide service if the

Shipper meets Transporter's applicable tariff conditions.