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Original Sheet No. 48 Original Sheet No. 48 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

23.13 CREDIT FOR CAPACITY RESOLD

The releasing Shipper will remain liable under its contract and

pay reservation fees for the capacity released. However, the

releasing Shipper will receive a simultaneous reservation fee

credit of 100% of the reservation fee billed to the acquiring

Shipper by Transporter for that business month. A releasing

Shipper paying a discounted rate is entitled to receive proceeds

from a release even if such proceeds exceed its reservation fee.

The releasing Shipper is liable for any late fees defaulted by the

replacement Shipper; however, Transporter will not unreasonably

refuse to relieve a releasing Shipper of all liability under its

contract when there is a permanent release of capacity.

Transporter may reverse the reservation fee credit to the extent

the replacement shipper does not pay Transporter for the

reservation charges.

24. ORDER NO. 497 AND 497-A COMPLIANCE INFORMATION AND PROCEDURES

24.1 SHARED OPERATING PERSONNEL OR FACILITIES.

Transporter has three marketing affiliates, K N Gas Marketing,

Inc., K N Gas Supply Services, Inc., and Anthem Energy, L.P. which

conduct transactions with Transporter. Transporter does not share

any operating personnel with its marketing affiliates. Certain

directors of Transporter are also directors of the marketing

affiliates. Transporter and its marketing affiliates share

certain administrative and support services, as well as a

telephone system and mainframe computer equipment. The mainframe

computer equipment, including access to all computer data bases,

is password protected in order to maintain operational separation

and confidential access to the system.