K N Interstate Gas Transmission Co.

Second Revised Volume No. 1-B

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Effective Date: 11/01/1994, Docket: RP94-397-000, Status: Effective

Second Revised Sheet No. 52 Second Revised Sheet No. 52 : Superseded

Superseding: First Revised Sheet No. 52

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

23.12 PAYMENT FOR RELEASED CAPACITY ACQUIRED

Payment for reservation, capacity and commodity charges will be due

as required under the applicable tariff provisions for payment of

such amounts.

23.13 CREDIT FOR CAPACITY RESOLD

The releasing Shipper will remain liable under its contract and pay

reservation fees for the capacity released. However, the releasing

Shipper will receive a simultaneous reservation fee credit of 100%

of the reservation fee billed to the acquiring Shipper by

Transporter for that business month. A releasing Shipper paying a

discounted rate is entitled to receive proceeds from a release even

if such proceeds exceed its reservation fee. The releasing Shipper

is liable for any late fees defaulted by the replacement Shipper;

however, Transporter will not unreasonably refuse to relieve a

releasing Shipper of all liability under its contract when there is

a permanent release of capacity. Transporter may reverse the

reservation fee credit to the extent the replacement Shipper does

not pay Transporter for the reservation charges.