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First Revised Sheet No. 39 First Revised Sheet No. 39 : Superseded

Superseding: Original Sheet No. 39

RATE SCHEDULE IT - 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. 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,

and 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.