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

First Revised Sheet No. 55 First Revised Sheet No. 55 : Superseded

Superseding: Original Sheet No. 55

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

CIG has also filed, in Docket Nos. RP89-178, TM90-4-32 and

TM90-5-32, to flow through the Buyout-Buydown Obligation assigned

to CIG by its former pipeline supplier, Northwest Pipeline

Corporation ("Northwest") and recover a portion of this obligation

from its jurisdictional customers. For the purpose of calculating

each customer's Purchase Deficiency, CIG utilized Northwest's Base

Period of Calendar Years 1982 and 1983 and a Deficiency Period of

Calendar Years 1984 through 1988. Pursuant to this calculation, CIG

has allocated $26,889, as adjusted, (Docket No. TM90-5-32) as

Transporter's fixed charge Buyout-Buydown Obligation with respect

to the Buyout-Buydown Obligation incurred by CIG from Northwest.

Accordingly, Transporter has calculated each affected Shipper's

allocated share of Transporter's fixed charge Buyout-Buydown

Obligation to CIG, using the same procedures CIG and Northwest

utilized in allocating such cost.

Any refunds related to CIG's Buyout-Buydown billing which

Transporter receives will be refunded to Shippers by Transporter on

the same basis as the refund amount was initially recovered by

Transporter from such Shippers. Any increase or decrease in CIG's

Buyout-Buydown billing to Transporter will be flowed-through to

Shippers on the same proportionate basis, to the extent possible,

as the increase or decrease was allocated by CIG to Transporter.

25.3 ELECTION TO DELAY BILLING.

Any Shipper notifying Transporter in writing no later than 30 days

after the date of the Commission's order accepting tariff sheets

authorizing the initial fixed charge billing of its election to do

so may delay the initial billing of the Buyout-Buydown Obligation

applicable to such Shipper until the normal billing cycle in

November 1989. Any Shipper electing to delay the commencement of

Buyout-Buydown Obligation billings and notifying the Transporter in

writing on or before such date may elect an Amortization Period

other than twelve months, not to exceed 60 months. Upon acceptance

of an appropriate tariff filing to be made by Transporter upon

receipt of such notice, Shippers electing to delay commencement of

initial billing and an alternate Amortization Period will be billed

in the normal billing cycle commencing in November 1989, based on

their elections.