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Original Sheet No. 37 Original Sheet No. 37 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

18.5 MATCH

The original firm Shipper shall have the option to

execute a firm service agreement which exactly matches

the rate and term of the bid constituting the highest

economic unit value to Transporter, except that the

original firm Shipper need not match a contract term of

more than ten (10) years. The original firm Shipper

need only match the quantity bid if the quantity bid is

less than the quantity offered under Section 18.3

above. Transporter will notify the original firm

Shipper within five (5) work days of the best offer it

must match by tendering to such Shipper a service

agreement. The service agreement must be executed by

the original firm Shipper within fifteen (15) days of

Transporter's tender thereof. Transporter is not

required to accept an offer at less than the maximum

rate.

18.6 NO BIDS

Where there are no competing bids for the capacity and

the original firm Shipper agrees to pay the maximum

rate, service may be contracted for any term the

original firm Shipper chooses. Transporter is not

required to accept an offer at less than the maximum

rate. If Transporter rejects a bid at less than the

maximum rate, the original Shipper will receive

continued service at the maximum rate unless a

negotiated rate is agreed to by Transporter and the

original Shipper.

19. DULY CONSTITUTED AUTHORITIES

This FERC Gas Tariff, including these General Terms and

Conditions and the respective obligations of the parties

under the Service Agreement, is subject to valid current

and future laws, orders, rules and regulations of duly

constituted authorities having jurisdiction. Each Party's

obligations under a Service Agreement is conditioned upon

obtaining authorization from the appropriate governmental

authorities.