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First Revised Sheet No. 88 First Revised Sheet No. 88 : Superseded

Superseding: Original Sheet No. 88

RATE SCHEDULE FSS - continued

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.

2.3 Firm storage services is only available for injection and

withdrawal on a nominated basis. Use of the service requires

nominated transportation service to make injections and

withdrawals. The full transportation commodity charge will only be

assessed on withdrawals, not on injections.

2.4 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 storage

which shall be retained by Transporter as compensation for the

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 withdrawal by Shipper. The Fuel

Reimbursement Quantity shall be stated as a percentage of the

natural gas injected by Transporter at the inlet side of

Transporter's storage facilities.

b. Title to Fuel Reimbursement Quantity shall vest in Transporter

upon receipt at the inlet side of Transporter's storage

facilities at no cost and free and clear of all adverse

claims.