K N Interstate Gas Transmission Co.

Third Revised Volume No. 1-A

Effective Date: 08/01/1996, Docket: RP96-296-000, Status: Effective

Original Sheet No. 9 Original Sheet No. 9 : Superseded

RATE SCHEDULE FT - continued

3. SERVICE DEFINITIONS

3.1 FUEL REIMBURSEMENT QUANTITY.

a. The Fuel Reimbursement Quantity shall be that

portion of Shipper's natural gas received by

Transporter for transportation which shall be

retained by Transporter as compensation for gas

used in rendering service to Shipper, including

Company-used gas, lost and unaccounted for gas.

This gas shall be retained by Transporter reducing

the thermally equivalent volumes available for

delivery to Shipper. The Fuel Reimbursement

Quantity shall be stated as a percentage of the

natural gas received by Transporter at the

Point(s) of Receipt.

b. Title to Fuel Reimbursement Quantity shall vest in

Transporter upon receipt at the Receipt Point(s)

at no cost and free and clear of all adverse

claims.

c. The Fuel Reimbursement Quantity will be determined

pursuant to Section 15 of the General Terms and

Conditions of the FERC Gas Tariff.

3.2 MAXIMUM DAILY TRANSPORTATION QUANTITY. The Maximum

Daily Transportation Quantity (MDTQ) shall be the

maximum quantity of natural gas, in MMBTU, which

Transporter agrees to deliver on any day for the

account of Shipper at all Delivery Point(s). Such

delivery points and such MDTQ shall be specified in the

executed Service Agreement.