K N Interstate Gas Transmission Co.

Third Revised Volume No. 1-B

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

Original Sheet No. 19 Original Sheet No. 19 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

e. Imbalance gas; and

f. Unauthorized contract overrun deliveries (when

no-notice service not available).

8.2 At any receipt or delivery point, Transporter will

allocate flows to Shippers according to the following

methodology:

a. Gas will be allocated first to firm

transportation through the point, up to the daily

nomination. If insufficient gas is available to

satisfy firm nominations, the available gas will

be allocated pro rata based on firm nominations;

b. Any remaining volumes will be allocated pro rata

to interruptible transportation based on the

approved nominations.

8.3 PREDETERMINED ALLOCATION AGREEMENTS. Transporter will

enter into mutually acceptable predetermined allocation

agreements with upstream or downstream parties to

accommodate allocation methodologies different than

that outlined in Section 8.2.

8.4 OPERATIONAL BALANCING AGREEMENTS. Transporter will

enter into mutually acceptable operational balancing

agreements with upstream or downstream parties.

8.5 Firm Storage Service and Interruptible Storage Service

injections and withdrawals will be assumed to equal the

approved nomination.

9. BILLING.

9.1 On or before the twentieth day of each month,

Transporter shall use reasonable efforts to render

invoices for all charges applicable to the preceding

month. Invoices shall include any applicable credits,

including those relating to demand charges for released

capacity, if paid. When information necessary for

billing purposes is in the control of Shipper, such

information shall be delivered to Transporter by

Shipper on or before the fifth business day of each

month for the prior monthly billing period.