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First Revised Sheet No. 41 First Revised Sheet No. 41 : Superseded

Superseding: Original Sheet No. 41

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

22.7 LATERAL LINE POLICY

Pursuant to 18 C.F.R. 154.39, Transporter will not build or

contribute to the cost of building any sales lateral pipelines to

any resale customers. Nothing in this statement shall require

Transporter to file an application for a certificate of public

convenience and necessity under Section 7(c) of the Natural Gas

Act. Nothing in this statement, further, shall prevent Transporter

from contesting an application for service filed pursuant to

Section 7(a). Transporter reserves the right to seek a waiver of

this statement, for good cause shown, during any proceeding before

the Commission instituted under Section 7 of the Natural Gas Act.

22.8 CREDIT WORTHINESS

Transporter shall not be required to perform or to continue service

under any Rate Schedule for any Shipper who is or has become

insolvent or who, at Transporter's request, fails within a

reasonable period to demonstrate credit worthiness; provided,

however, such Shipper may receive service if Shipper prepays for

such service or furnishes good and sufficient security, as

determined by Transporter in its reasonable discretion, in an

amount equal to the cost of performing the service requested by

Shipper for a three (3) month period. Such cost of performing the

service shall include, but not be limited to, the projected cost of

transporting Shipper's gas or the equivalent of the cost of gas

owed Transporter by the Shipper under an imbalance. For purposes

herein, the insolvency of a Shipper shall be evidenced by the

filing by Shipper, or any parent entity thereof, of a voluntary

petition in bankruptcy or the entry of a decree or order by a court

having jurisdiction in the premises adjudging the Shipper bankrupt

or insolvent, or approving as properly filed, a petition seeking

reorganization, arrangement, adjustment or composition of or in

respect of the Shipper under the Federal Bankruptcy Act or any

other applicable federal or state law, or appointing a receiver,

liquidator, assignee, trustee, sequestrator (or