K N Interstate Gas Transmission Co.

First Revised Volume No. 1-D

Effective Date: 07/10/1995, Docket: RP95-412-000, Status: Effective

Second Revised Sheet No. 45 Second Revised Sheet No. 45 : Superseded

Superseding: First Revised Sheet No. 45

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

23.8 EXECUTION OF AGREEMENTS

a. Parties wishing to bid on released capacity can enter into a

nonspecific FT-BW Service Agreement(s) prior to bidding on

capacity to speed the process. The agreement(s) will allow

creditworthiness evaluation and execution to be done ahead of

time so that only preparation and issuance of appendices to the

Service Agreement will be necessary before released capacity

may be used.

b. Both amendments to existing Service Agreements and new Service

Agreements must be executed and returned to Transporter no

later than 24 hours prior to the nomination deadline applicable

to the release and acquisition. The replacement Shipper may

nominate when (1) Transporter receives a release notification

for a prearranged release (prearranged only for releases at

maximum rate or releases for thirty-one (31) days or less), or

(2) the replacement Shipper places its bid for capacity. Any

amendment or Service Agreement received after such date may not

be effective until the next day for which flow can be

nominated. If the release notification or bid conflicts with

Transporter's nomination procedures, Transporter will treat the

nomination as a late filed nomination and schedule this

capacity on a reasonable efforts basis.

c. The replacement Shipper acquiring temporary or permanently

released capacity shall execute a Service Agreement with

Transporter for the contract quantities acquired in accordance

with Rate Schedule FT-BW under which the releasing Shipper

contracted for service. The replacement Shipper is subject to

Transporter's operational provisions as stated herein.

Transporter will bill the replacement Shipper for all charges

due, including imbalance, variance and overrun charges. All

releases of firm capacity will be contracted for by Transporter

as firm transportation, regardless of the interruption

conditions imposed by the releasing Shipper.