K N Interstate Gas Transmission Co.

Second Revised Volume No. 1-B

Effective Date: 01/01/1996, Docket: TM96-2-53-000, Status: Effective

Second Revised Sheet No. 36 Second Revised Sheet No. 36 : Superseded

Superseding: First Revised Sheet No. 36

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

21. GAS RESEARCH INSTITUTE CHARGE AND FERC ANNUAL CHARGE ADJUSTMENT

PROVISIONS

21.1 GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT:

a. PURPOSE

Transporter has joined with other gas enterprises in the

formation of and participation in the activities and

financing of Gas Research Institute (GRI), an Illinois not

for profit corporation. GRI has been organized for the

purpose of sponsoring Research, Development and

Demonstration (RD&D) programs in the field of natural and

manufactured gas for the purpose of assisting all segments

of the gas industry in providing adequate, reliable, safe,

economic and environmentally acceptable gas service for the

benefit of gas consumers and the general public.

For the purpose of funding of GRI's approved expenditures,

this Section establishes a GRI Adjustment Charge to be

applicable to Transporter's Rate Schedules NNS, FT and IT,

as set forth on Sheet No. 4-D of Second Revised Volume No.

1-A of this FERC Gas Tariff; provided however, such charge

shall not be applicable to Shippers which are interstate

pipelines and which include in their rates a charge for RD&D

expenditures, or to Shippers which pay a charge for RD&D

expenditures to a third party in connection with third party

transportation of gas.

b. BASIS OF THE GRI ADJUSTMENT CHARGE

The Rate Schedules shall include an increment for a GRI

Adjustment Charge for RD&D. Such adjustment charge shall be

that increment, adjusted to Transporter's pressure base and

heating value, if required, which has been approved by