K N Interstate Gas Transmission Co.

Third Revised Volume No. 1-B

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

Original Sheet No. 35 Original Sheet No. 35 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

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

to the subject capacity at the end of the contract term

will cease.

18.2 BIDDING PROCESS

Upon Transporter's receipt of the Shipper's Right of

First Refusal notice described in Section 18.1 above,

Transporter will post the Shipper name, effective date,

and primary receipt and delivery points and their

associated capacity on its Electronic Bulletin Board

(EBB) in order to solicit bids for the capacity.

A Bidder desiring to obtain the posted capacity must

submit a bid via Facsimile 303-763-3515 to Transporter

in accordance with Section 18.3 below, within thirty

(30)calendar days of the posting to participate in the

Right of First Refusal process.

If the tendered bids are less than maximum rate,

Transporter will utilize an iterative bidding

process. The highest bid will be posted on the

EBB and each iteration's best offer will be posted

on the EBB for informational purposes, along with

the name of the highest bidder. In subsequent

iteration(s), bidders will have ten (10) days to

respond to Transporter after a posting; thereafter,

after each bidding period, Transporter will have up

to five (5) days to perform an analysis to determine

the best offer as described in Section 18.4 below.

The bidding process must be completed forty-five(45)

days before the end of the existing contract term.

If any bid submitted by a bidder is subsequently

withdrawn, any new bids submitted by such bidder for

the same path(s) must be at a higher rate.

Transporter will have the right to reject, on a

non-discriminatory basis, any bid not at the

maximum rate.

18.3 CONTENTS OF BID

Service Agreements, corresponding to the Shipper's bid,

will be required and must contain the price, term,

amount of capacity desired and primary receipt and

delivery points.