K N Interstate Gas Transmission Co.

Second Revised Volume No. 1-A

Effective Date: 11/01/1994, Docket: RP94-397-000, Status: Effective

First Revised Sheet No. 8 First Revised Sheet No. 8 : Superseded

Superseding: Original Sheet No. 8

RATE SCHEDULE FT - continued

c. Transporter and Shipper enter into a facilities agreement

which is subject to the provisions of Section 5.3(a);

d. The nature, extent and timing of facilities required shall be

at the reasonable discretion of Transporter; and

e. Transporter receives acceptable assurance of financial

reliability from any Shipper requesting additional capacity.

3. SERVICE DEFINITIONS

3.1 FUEL REIMBURSEMENT QUANTITY.

a. The Fuel Reimbursement Quantity shall be that portion of

Shipper's natural gas received by Transporter for

transportation which shall be retained by Transporter as

compensation for gas used in rendering service to Shipper,

including Company-used gas, lost and unaccounted for gas.

This gas shall be retained by Transporter reducing the

thermally equivalent volumes available for delivery to

Shipper. The Fuel Reimbursement Quantity shall be stated as a

percentage of the natural gas received by Transporter at the

Point(s) of Receipt.

b. Title to Fuel Reimbursement Quantity shall vest in Transporter

upon receipt at the Receipt Point(s) at no cost and free and

clear of all adverse claims.

c. The Fuel Reimbursement Quantity will be determined pursuant to

Section 15 of the General Terms and Conditions of the FERC Gas

Tariff.