K N Interstate Gas Transmission Co.

Third Revised Volume No. 1-B

Effective Date: 08/01/1996, Docket: RP96-296-001, Status: Effective

Substitute Original Sheet No. 57 Substitute Original Sheet No. 57 : Superseded

Superseding: Original Sheet No. 57

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

25. ORDER NO. 500/528. FLOW-THROUGH OF PIPELINE SUPPLIERS BUY-

OUT BUY-DOWN BILLINGS.

25.1 PURPOSE.

This section establishes the procedures under which

Transporter will recover from Shippers under

Transporter's Rate Schedules the total jurisdictional

portion of Buyout-Buydown Obligations paid by

Transporter pursuant to applicable tariff provisions of

a former upstream pipeline supplier, on an as billed

basis.

25.2 BASIS OF BILLING.

Unless otherwise approved by the Commission,

Transporter will calculate each affected Shipper's

allocated share of Transporter's fixed charge Buyout-

Buydown Obligation using the same procedures the

upstream pipeline utilized in allocating such cost.

Any refunds related to Buyout-Buydown billings which

Transporter receives will be refunded to Shippers by

Transporter on the same basis as the refund amount was

initially recovered by Transporter from such Shippers.

Any increase or decrease in Buyout-Buydown billings to

Transporter will be flowed-through to Shippers on the

same proportionate basis, to the extent possible, as

the increase or decrease was allocated by to

Transporter by the applicable upstream pipeline.

25.3 ELECTION TO DELAY BILLING.

Any Shipper notifying Transporter in writing no later

than 30 days after the date of the Commission's order

accepting tariff sheets authorizing the initial fixed

charge billing of its election to do so may delay the

initial billing of the Buyout-Buydown Obligation

applicable to such Shipper until the billing period

specified in the Filing.