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First Revised Sheet No. 50 First Revised Sheet No. 50 : Superseded

Superseding: Original Sheet No. 50

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

c. The replacement Shipper acquiring temporary or permanently

released capacity shall execute a service agreement with

Transporter for the contract quantities acquired in accordance

with the applicable rate schedule under which the releasing

Shipper contracted for service. The replacement Shipper is

subject to Transporter's operational provisions as stated in

this tariff. Transporter will bill the replacement Shipper

for all charges due, including imbalance and overrun charges.

All releases of firm capacity will be contracted for by

Transporter as firm transportation, regardless of the

interruption conditions imposed by the releasing Shipper.

d. A Shipper releasing capacity on a temporary basis shall

execute an amendment to its service agreement with Transporter

to reflect the reduction in contract quantities, by receipt

and delivery point(s), resulting from the release. This

reduction will not reduce the amount of reservation charges

due under the agreement.

23.9 COMPLIANCE BY REPLACEMENT SHIPPER

By acquiring released capacity, a replacement Shipper agrees that

it will comply with the terms and conditions of Transporter's firm

capacity releasing program and all applicable Commission orders and

regulations, including Part 284. Shipper also agrees to be

responsible to Transporter for compliance with all terms and

conditions of Transporter's tariff, as well as Shipper's service

agreement, including, but not limited to, the terms and conditions

regarding nominations, scheduling of receipts and deliveries and

the payment for all rates, charges, assessments and fees for

service rendered pursuant to the service agreement.

23.10 CAPACITY RELEASE AT MAXIMUM RATE

Assignment of capacity to a replacement Shipper will take place

immediately when capacity is released by a firm Shipper who has

pre-arranged a release to a designated replacement