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Second Revised Sheet No. 64 Second Revised Sheet No. 64 : Superseded

Superseding: Sub First Revised Sheet No. 64

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

(3) Any Gas Supply Realignment Costs actually incurred and

recovered from Shippers under Rate Schedules FT and NNS

but subsequently required by the Commission to be

refunded shall be refunded to such Shippers within sixty

(60) days after the date of the Commission order

requiring such refunds on the ratio of the Shipper's

aggregate MDQ to the total aggregate MDQ under Rate

Schedules FT and NNS for the time period during which the

Gas Supply Realignment Costs were allocated. Any Gas

Supply Realignment Costs actually incurred and deemed

recovered from Shippers under Rate Schedule IT shall be

credited to the Gas Supply Realignment Costs to be

included in the rates for Rate Schedule IT in the next

quarterly filing.

c. Within sixty (60) days from each twelve (12) month period

following the implementation date, Transporter shall file a

statement with the Commission reflecting:

(1) The aggregate amount of Gas Supply Realignment Costs

incurred and allocated to be collected during the

previous twelve (12) month period from Rate Schedule IT,

as determined pursuant to Section 26.3 d.;

(2) The aggregate amount of Gas Supply Realignment Costs

deemed collected during the previous twelve (12) month

period by Transporter under Rate Schedule IT as

determined pursuant to Section 26.3 d.

Transporter shall have the option at any time after twelve

(12) months from the initial implementation of the GSR

surcharge to file to recover any Gas Supply Realignment Costs

unrecovered through its Rate Schedule IT rates through an

alternate mechanism.