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First Revised Sheet No. 62 First Revised Sheet No. 62 : Superseded

Superseding: Original Sheet No. 62

RATE SCHEDULE NNS - continued

2.4 No-notice service may be released under the voluntary capacity

reallocation process at any time.

2.5 No-notice customers will be able to 1) nominate or release the

embedded FT, or 2) use the embedded storage as a nominated service.

When nominating or releasing the embedded FT, storage is the

primary receipt point and all other receipt points are secondary.

If either the transportation or storage component of the no-notice

service is released or used separately, the availability of no-

notice service will be reduced accordingly.

2.6 Any use of the firm transportation component, separate from no-

notice, shall be subject to the provisions of Rate Schedule FT.

2.7 Storage of gas in the NNS account will be subject to the provisions

of Rate Schedule FSS, except for nomination and storage inventory

requirements. Any use of the NNS storage account separate from NNS

will be subject to the provisions of Rate Schedule FSS.

2.8 Storage inventories may be traded between FSS, ISS or NNS

contracts. Both parties must notify Transporter in writing or via

the electronic bulletin board of their desire to trade, the

quantity to be traded, and the effective date (prospective only).

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, 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.