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First Revised Sheet No. 42 First Revised Sheet No. 42 : Superseded

Superseding: Original Sheet No. 42

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

other similar official) of the Shipper or of any substantial part

of its property, or the ordering of the winding-up or liquidation

of its affairs, with said order or decree continuing unstayed and

in effect for a period of sixty (60) consecutive days.

22.9 INCIDENTAL PURCHASE AND SALE

From time to time, Transporter may be required to purchase or sell

gas in order to maintain the proper level of cushion gas in

storage. The volume of cushion gas may be enhanced or depleted due

to overreceipts or overdeliveries on the system, respectively.

Transporter will, through the cash out mechanism, either receive

money from Shippers for overdeliveries or pay Shippers for

overreceipts. Should physical make up of cushion gas be necessary,

Transporter will use its cash out receipts to purchase gas on the

open market for injection into storage. Should disposition of

cushion gas be necessary, Transporter will sell gas either in

storage or at the storage withdrawal point at the index price on a

first-come, first served basis. Sales or purchase of gas will be

posted on the electronic bulletin board for at least two (2)

business days prior to the actual purchase or sale.

23. VOLUNTARY REALLOCATION OF CAPACITY

23.1 APPLICABILITY

(a) Any Shipper that holds firm capacity rights, including firm

transportation, storage and no-notice service, under a rate

schedule contained in Transporter's tariff, may elect to

release, subject to the firm capacity releasing program, all

or a portion of such firm capacity rights.