K N Interstate Gas Transmission Co.

Second Revised Volume No. 1-B

Effective Date: 07/10/1995, Docket: RP95-412-000, Status: Effective

Third Revised Sheet No. 3 Third Revised Sheet No. 3 : Superseded

Superseding: Second Revised Sheet No. 3

TABLE OF CONTENTS - cont.

23. VOLUNTARY REALLOCATION OF CAPACITY. . . . . . . . . . . . . . . .43

23.1 APPLICABILITY . . . . . . . . . . . . . . . . . . . . . . .43

23.2 VOLUNTARY REALLOCATION RIGHTS. . . . . . . . . . . . . . . .44

23.3 TERM OF RELEASED CAPACITY. . . . . . . . . . . . . . . . . .45

23.4 NOTICE BY PARTY ELECTING TO ACQUIRE CAPACITY . . . . . . . .46

23.5 BID PERIOD . . . . . . . . . . . . . . . . . . . . . . . . .47

23.6 ABILITY TO WITHDRAW CAPACITY POSTING OR CAPACITY BID AND

ABILITY TO MAKE CONDITIONED BID. . . . . . . . . . . . . . .48

23.7 POSTING AND ALLOCATION OF RELEASED CAPACITY . . . . . . . .48

23.8 EXECUTION OF AGREEMENTS . . . . . . . . . . . . . . . . . .50

23.9 COMPLIANCE BY REPLACEMENT SHIPPER . . . . . . . . . . . . .51

23.10 CAPACITY RELEASE AT MAXIMUM RATE . . . . . . . . . . . . .51

23.11 CAPACITY RELEASE FOR THIRTY-ONE DAYS OR LESS. . . . . . . .52

23.12 PAYMENT FOR RELEASED CAPACITY ACQUIRED . . . . . . . . . .53

23.13 CREDIT FOR CAPACITY RESOLD . . . . . . . . . . . . . . . .53

24. ORDER NO. 497 AND 497-A COMPLIANCE INFORMATION AND PROCEDURES . .54

24.1 SHARED OPERATING PERSONNEL OR FACILITIES.. . . . . . . . . .54

24.2 STANDARDS OF CONDUCT . . . . . . . . . . . . . . . . . . . .54

24.3 SHIPPER COMPLAINT PROCEDURES.. . . . . . . . . . . . . . . .54

24.4 PROCEDURES FOR OBTAINING TRANSPORTATION INFORMATION. . . . .55

25. ORDER NO. 500/528. FLOW-THROUGH OF PIPELINE SUPPLIERS BUY-OUT

BUY-DOWN BILLINGS.. . . . . . . . . . . . . . . . . . . . . . . .55

25.1 PURPOSE. . . . . . . . . . . . . . . . . . . . . . . . . . .55

25.2 BASIS OF CIG's BILLING . . . . . . . . . . . . . . . . . . .55

25.3 ELECTION TO DELAY BILLING . . . . . . . . . . . . . . . . .56

25.4 ELECTION OF AMORTIZATION PERIOD. . . . . . . . . . . . . . .57

25.5 FAILURE TO ELECT . . . . . . . . . . . . . . . . . . . . . .57

25.6 PAYMENT TO TRANSPORTER . . . . . . . . . . . . . . . . . . .58

25.7 RESERVATIONS . . . . . . . . . . . . . . . . . . . . . . . .58

26. TRANSITION COST RECOVERY MECHANISM. . . . . . . . . . . . . . . .59

26.1 ACCOUNT 191 TRANSITION COSTS.. . . . . . . . . . . . . . . .59

26.2 UPSTREAM PIPELINE TRANSITION COSTS.. . . . . . . . . . . . .60

26.3 GAS SUPPLY REALIGNMENT TRANSITION COSTS. . . . . . . . . . .60

a. DEFINITIONS.. . . . . . . . . . . . . . . . . . . . . .60

(1) CAM Gas. . . . . . . . . . . . . . . . . . . . . .60

(2) NPV of CAM Gas . . . . . . . . . . . . . . . . . .61

26.4 TRANSITION COST RECOVERY MECHANISM. . . . . . . . . . . . .61

27. CREDITING OF EXCESS RATE SCHEDULE IT REVENUE. . . . . . . . . . .65