K N Interstate Gas Transmission Co.

Second Revised Volume No. 1-B

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Effective Date: 11/01/1994, Docket: RP94-397-002, Status: Effective

Sub. First Revised Sheet No. 40 Sub. First Revised Sheet No. 40 : Superseded

Superseding: Original Sheet No. 40

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

processed by Transporter, absent any other agreement, the Shipper

will receive credit for extracted products based on allocated

volumes and compositions at applicable receipt points to

Transporter's transmission system, as follows: 98% of residue

gas, 50% of net hydrocarbon liquids proceeds, and 20% of net

helium proceeds. Transporter will individually negotiate on a

non-discriminatory basis other processing arrangements with

Shippers. If Transporter has Shipper's gas processed through a

third party plant, and Shipper does not have a processing

agreement with the third party plant, Transporter will pass

through to Shipper all residue gas and net liquids proceeds

received from the third party processor.

22.6 SCHEDULING PRINCIPLES

a. The order for scheduling transportation services is as

follows:

(1) Firm Services at primary points (scheduled pro rata

based on nominations);

(2) Firm Services at secondary points utilizing primary

path (scheduled pro rata based on nominations);

(3) Firm Transportation at secondary points not utilizing

primary path (scheduled pro rata based on

nominations);

(4) Interruptible services at maximum rates (scheduled pro

rata based on nominations);

(5) Interruptible services at less than maximum rates

(scheduled by rate);

(6) Firm service overrun (scheduled pro rata based on

nominations);

(7) Interruptible service overrun (scheduled pro rata

based on nominations).

b. Released capacity has the same priority as non-released

capacity.

c. Released FT, released FSS and released NNS are considered

firm services.