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First Revised Sheet No. 46 First Revised Sheet No. 46 : Superseded

Superseding: Original Sheet No. 46

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

23.5 BID PERIOD.

If a Shipper desires to release capacity, Shipper may post the

available capacity on Transporter's electronic bulletin board.

This posting will be for a minimum period of two business days, for

releases of more than one (1) calendar month in length, and up to a

maximum period of one month, as specified by releasing Shipper. A

releasing Shipper may specify an objectively stated, non-

discriminatory standard and post it on Transporter's EBB for

determining the best bid(s). If releasing Shipper does not so

specify, bids will be evaluated based on the economic value of the

reservation charge bid.*

The economic value of a bid shall be defined as the total net

present value of the reservation charge bid, not to exceed a term

of twenty (20) years. Transporter will give any replacement

Shipper found by the releasing Shipper (if any) an opportunity to

match any better offer by the close of business on the next

business day following the close of the bid period (match day).

All offers must be received by 5:00 PM CT on the last day of the

bid period and on match day. If the replacement Shipper matches

the better offer, Transporter will contract with the replacement

Shipper found by the releasing customer. If the better offer is

not matched, Transporter will contract with the person who made the

better offer. In all situations, including those where Shipper

specified criteria are used, Transporter will evaluate and rank the

bids. Capacity will be awarded once the winning bid is determined.

Capacity not taken by the winning bidder will be offered to the

next highest bidder.

* According to the following formula: