K N Interstate Gas Transmission Co.

Third Revised Volume No. 1-B

Effective Date: 01/01/1997, Docket: RP97- 81-000, Status: Effective

First Revised Sheet No. 34 First Revised Sheet No. 34 : Superseded

Superseding: Original Sheet No. 34

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

17. REMEDIES

17.1 No provision of these General Terms and Conditions

regarding specific remedies shall bar Transporter

from asserting any other remedy it may have at law

or in equity.

17.2 In the event of a bona fide dispute between the

Parties with respect to any invoices, Transporter

shall have the right to discontinue the

transportation of gas beginning 30 days after the

issuance of a final nonappealable decision by a

court of competent jurisdiction in favor of

Transporter, if Shipper has failed to remedy or

correct such violation within said 30-day period.

18. SERVICE AGREEMENT/RIGHT OF FIRST REFUSAL PROCESS

Shippers under Rate Schedules FT, NNS and FSS, with a

term of one (1) year or more may exercise the Right of

First Refusal. Such agreements are not subject to

pregranted abandonment provided notice is given as

described herein. A firm Shipper may elect to retain a

portion of its capacity, subject to the Right of First

Refusal process and have Transporter's pregranted

abandonment authority apply to the remainder of the

capacity. For the purpose of exercising the Right of

First refusal, a Shipper paying a Negotiated Rate will

be subject to the provisions of Section 36 below. The

process for exercising the Right of First Refusal is as

follows:

18.1 NOTICE

Transporter will provide no more than nine (9)

months, and not less than six (6) months advance

written notice of pending contract expiration to

firm Shippers with contact terms of one (1) year or

more. Shippers must give notice to Transporter no

less than four (4) months before the expiration of

its firm throughput contract that it wishes

Transporter to post its capacity to begin the Right

of First Refusal process.

Failure by the Shipper to give Transporter the

notice specified in this section will result in the

automatic abandonment of the entitlement and the

Shipper's right