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Original Sheet No. 73 Original Sheet No. 73 : Superseded

GENERAL TERMS AND CONDITIONS FOR SERVICES- continued

Transporter has the right to issue an OFO and

require minimum storage inventory levels of 30%

any day except for the months of March, April and

May. If inventory levels are less than 30%, MDWQ

will be reduced to 50% and anything in excess will

be charged OFO penalties.

All quantities tendered on an individual contract

basis to Transporter and/or taken by Shipper on a

daily basis in violation of Transporter's

operational flow orders shall constitute

unauthorized receipts or deliveries for which a

charge of $25 per MMBtu plus the gas index price

pursuant to Section 5,2,d(3) of Rate Schedule FT,

Volume 1-A the days the Operational Flow Order is

in place shall be assessed and the resulting

imbalance will be reduced to zero. Shippers will

be exempt from penalties on imbalances that result

from complying with an OFO. Upon an operational

flow order becoming effective, as specified in the

operational flow order or as provided in this

Section 29 of General Terms and Conditions,

Shipper, OFO party, or operator of the facilities

connecting with Transporter's facilities shall be

permitted the time stated in the OFO, or such

lesser time as is required to protect the

integrity of Transporter's system, to make

adjustments in compliance with the operational

flow orders. If Shipper, or operator of such

interconnect, adjusts its tenders or takes within

such notice period, then no charge, as provided

for herein, shall be assessed.