K N Interstate Gas Transmission Co.

Second Revised Volume No. 1-B

Effective Date: 11/01/1994, Docket: RP94-397-000, Status: Effective

First Revised Sheet No. 33 First Revised Sheet No. 33 : Superseded

Superseding: Original Sheet No. 33

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

If the tendered bids are less than maximum rate, Transporter will

utilize an iterative bidding process. Each bid will be posted on

the EBB and each iteration's best offer will be posted on the EBB

for informational purposes, along with the name of the highest

bidder. In subsequent iteration(s), bidders will have ten (10)

days to respond to Transporter after a posting; thereafter, after

each bidding period, Transporter will have up to ten (10) days to

perform an analysis to determine the best offer as described in

Section 18.4 below. The bidding process must be completed forty-

five (45) days before the end of the existing contract term.

If any bid submitted by a bidder is subsequently withdrawn, any new

bids submitted by such bidder for the same path(s) must be at a

higher rate.

Transporter will have the right to reject, on a non-discriminatory

basis, any bid not at the maximum rate.

18.3. CONTENTS OF BID

Service Agreements, corresponding to the Shipper's bid, will be

required and must contain the price, term, amount of capacity

desired and primary receipt and delivery points.

When any Shipper bids the maximum rate, such Shipper is only

required to bid up to the maximum rate for its requested receipt

and delivery points, not the maximum rate which may apply to

different receipt and delivery points which could be charged for

such service.

Multiple bids (defined as different bids made for different

portions of the total capacity) will be permitted.