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First Revised Sheet No. 111 First Revised Sheet No. 111 : Superseded

Superseding: Original Sheet No. 111

RATE SCHEDULE ISS - continued

b. Transporter does not have physical facilities to accommodate

requests for service of existing and prospective Shippers

accepted by Transporter pursuant to Section 4.1 hereof;

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.

2.3 Interruptible Storage Service (ISS) is only available for injection

and withdrawal on a nominated basis. Use of the service requires

nominated transportation service to make injections and

withdrawals. Injections and withdrawals for ISS will be made to

the extent capacity is available.

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