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First Revised Sheet No. 15 First Revised Sheet No. 15 : Superseded

Superseding: Original Sheet No. 15

RATE SCHEDULE FT - continued

(3) Imbalances equal to or less than ten percent (10%) of

deliveries or two hundred (200) MMBtu for a month may be

made up in kind.

(4) At the end of the trading period, Transporter will charge

for or credit for any imbalance over ten percent (10%)

according to the schedule below. Up to ten percent (10%)

or two hundred (200) MMBtu of monthly imbalance may be

carried forward and will be considered as the beginning

imbalance for the month following actual notice.

Imbalance as Rate as a % of Average Market Index*

% of Actual Deliveries K N Charge K N Credit

--------------------- -------------- ---------------------

More than 10% 125% 75%

* Average of the first month and mid-month market indices

defined as the average of 1) the first of month index and mid-

point of the aftermarket range for CIG as reported by "Inside

FERC Gas Market Report" and 2) average of the weighted monthly

average of all weekly surveys for CIG in "Natural Gas

Intelligence" for the month in which the imbalance occurred.

(5) Any imbalance less than the ten percent (10%) tolerance

remaining upon expiration of an FT agreement will be

cashed out at the index price defined above.

5.3 Shipper shall reimburse Transporter for:

a. ADDITIONAL FACILITY CHARGE. If Transporter, in its reasonable

discretion, agrees to add new facilities or expand existing

facilities, including compression, Transporter will allow

Shipper to choose either: