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Original Sheet No. 52 Original Sheet No. 52 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

23.8 EXECUTION OF AGREEMENTS

a. Parties wishing to bid on released capacity can

enter into a nonspecific FT, FSS or NNS

Agreement(s) prior to bidding on capacity to speed

the process. The agreement(s) will allow

creditworthiness evaluation and execution to be

done ahead of time so that only preparation and

issuance of appendices to the agreement will be

necessary before released capacity may be used.

b. Both amendments to existing service agreements and

new service agreements must be executed and

returned to Transporter no later than 24 hours

prior to the nomination deadline applicable to the

release and acquisition. The replacement Shipper

may nominate when (1) Transporter receives a

release notification for a prearranged release

(prearranged only for releases at maximum rate or

releases for less than one month), or (2) the

replacement Shipper places its bid for capacity.

Any amendment or service agreement received after

such date may not be effective until the next day

for which flow can be nominated. If the release

notification or bid conflicts with Transporter's

nomination procedures, Transporter will treat the

nomination as a late filed nomination and schedule

this capacity on a reasonable efforts basis.

c. The replacement Shipper acquiring temporary or

permanently released capacity shall execute a

service agreement with Transporter for the

contract quantities acquired in accordance with

the applicable rate schedule under which the

releasing Shipper contracted for service. The

replacement Shipper is subject to Transporter's

operational provisions as stated in this tariff.

Transporter will bill the replacement Shipper for

all charges due, including imbalance and overrun

charges. All releases of firm capacity will be

contracted for by Transporter as firm

transportation, regardless of the interruption

conditions imposed by the releasing Shipper.