K N Interstate Gas Transmission Co.

Second Revised Volume No. 1-B

Effective Date: 11/01/1994, Docket: RP94-397-003, Status: Effective

2nd Sub. First Revised Sheet No. 35 2nd Sub. First Revised Sheet No. 35 : Superseded

Superseding: Original Sheet No. 35

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

within five (5) work days of the best offer it must match by

tendering to such Shipper a service agreement. The service

agreement must be executed by the original firm Shipper within

fifteen (15) days of Transporter's tender thereof. Transporter is

not required to accept an offer at less than the maximum rate.

18.6 NO BIDS

Where there are no competing bids for the capacity and the

original firm Shipper agrees to pay the maximum rate, service may

be contracted for any term the original firm Shipper chooses.

Transporter is not required to accept an offer at less than the

maximum rate. If Transporter rejects a bid at less than the

maximum rate, the original Shipper will receive continued service

at the maximum rate unless a negotiated rate is agreed to by

Transporter and the original Shipper.

19. DULY CONSTITUTED AUTHORITIES

This FERC Gas Tariff, including these General Terms and Conditions and

the respective obligations of the parties under the Service Agreement,

is subject to valid current and future laws, orders, rules and

regulations of duly constituted authorities having jurisdiction. Each

Party's obligations under a Service Agreement is conditioned upon

obtaining authorization from the appropriate governmental authorities.

20. NOTICES AND COMMUNICATION

Communication between the Parties may be by electronic bulletin board,

fax, or in writing. In addition, communications between the parties

relating to capacity available or requested, bids, and trading parties'

agreements to trade, must be posted on the electronic bulletin board.

Nominations must be through the electronic bulletin board unless the

Parties receive notice otherwise. If written, such communication will

be considered delivered when deposited in the United States mail,

postage prepaid and registered, addressed to the Post Office address of

Transporter or Shipper, or at such other address as either shall

designate by formal written notice. Routine communications shall be

considered delivered when mailed by either registered or ordinary mail,

telecopied, or posted on the electronic bulletin board. Notices

pursuant to Section 16 of the General Terms and Conditions may be given

orally.