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First Revised Sheet No. 38 First Revised Sheet No. 38 : Superseded

Superseding: Original Sheet No. 38

RATE SCHEDULE IT - continued

Service Agreement between Shipper and Transporter ("Receipt

Points") for transportation of daily quantities of gas

tendered for the account of Shipper up to Shipper's Maximum

Daily Transportation Quantity (MDTQ) as specified in the

Service Agreement, plus fuel reimbursement quantities and

other deductions. Upon receipt of natural gas for Shipper's

account, Transporter shall, after a deduction for the Fuel

Reimbursement Quantity and any other deductions, transport and

deliver for the account of Shipper the thermal equivalent of

such gas at the Delivery Points, as specified in the Service

Agreement.

2.1 GATHERING. Gathering service will be provided on a non-

discriminatory, not unduly preferential basis, consistent with the

terms and conditions of this tariff. Gathering service will be

offered on a separate contractual basis.

2.2 ADDITIONAL FACILITIES. In no event shall Transporter be obligated

to provide any transportation service for which capacity is not

available or which would require the construction or acquisition of

new facilities or the modification or expansion of existing

facilities; however, Transporter may add facilities and/or expand

the system on a non-discriminatory basis whenever such is deemed,

in Transporter's reasonable judgment, to be economically,

operationally, and technically feasible, subject to the following

conditions:

a. Transporter has received an executed revised service agreement

from existing and prospective Shipper(s) requesting such

additional facilities or expansion of capacity;

b. Transporter does not have physical facilities or adequate

capacity in the system to accommodate requests for service of

existing and prospective Shippers accepted by Transporter

pursuant to Section 4.1 hereof;