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First Revised Sheet No. 61 First Revised Sheet No. 61 : Superseded

Superseding: Original Sheet No. 61

GENERAL TERMS AND CONDITIONS - cont.

incurred and booked by the end of the quarter preceding the

filing and which are known and measurable with reasonable

accuracy, plus carrying charges calculated on the net

outstanding balance (i.e., after Gas Supply Realignment

revenues are received and credited) from the date of

incurrence of such Gas Supply Realignment Costs to the

projected date of payment as determined pursuant to Section

154.305 of the Commission's regulations; provided, however,

that on and after the date of the credit calculated pursuant

to Section 26.4e. carrying charges shall be computed on the

net outstanding balance.

(1) Ninety percent (90%) of such Gas Supply Realignment Costs

shall be allocated to Shippers under Rate Schedules FT

and NNS, pursuant to Order No. 636, pro rata based on the

ratio of the Shipper's aggregate MDQ to the total

aggregate MDQ under Rate Schedules FT and NNS effective