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Original Sheet No. 55 Original Sheet No. 55 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

23.13 CREDIT FOR CAPACITY RESOLD

The releasing Shipper will remain liable under its

contract and pay reservation fees for the capacity

released. However, the releasing Shipper will receive

a simultaneous reservation fee credit of 100% of the

reservation fee billed to the acquiring Shipper by

Transporter for that business month. A releasing

Shipper paying a discounted rate is entitled to receive

proceeds from a release even if such proceeds exceed

its reservation fee. The releasing Shipper is liable

for any late fees defaulted by the replacement

Shipper; however, Transporter will not unreasonably

refuse to relieve a releasing Shipper of all

liability under its contract when there is a

permanent release of capacity. Transporter may

reverse the reservation fee credit to the extent

the replacement Shipper does not pay Transporter

for the reservation charges.

24. ORDER NO. 497 AND 497-A COMPLIANCE INFORMATION AND

PROCEDURES

24.1 SHARED OPERATING PERSONNEL OR FACILITIES.

Transporter's marketing affiliates are K N Marketing

and K N Gas Supply Services, Inc., K N Marketing,

L.P. and Wildhorse Energy Partners, LLC.

Transporter does not share any operating personnel

with its marketing affiliates. One director of

Transporter is also director of the marketing

affiliates. Transporter and its marketing

affiliates share certain administrative and support

services, as well as a telephone system and mainframe

computer equipment. The mainframe computer equipment,

including access to all computer data bases, is

password protected in order to maintain operational

separation and confidential access to the system.

24.2 STANDARDS OF CONDUCT.

Transporter will apply FERC Order No. 497 Standards of

Conduct and reporting requirements to its marketing

affiliates.