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First Revised Sheet No. 72 First Revised Sheet No. 72 : Superseded

Superseding: Substitute Original Sheet No. 72

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

30. TRACKING OF CERTAIN ACCOUNT NO. 858 COSTS

30.1 Purpose

The purpose of this tracking mechanism is to recover certain

Account No. 858 costs over a limited term. Specifically, this

Section covers the recoverability of costs associated with Colorado

Interstate Gas Company (CIG) and Trailblazer Pipeline Company

(Trailblazer) transportation agreements, except as provided in

subsection 30.2(c), reflected in Account No. 858, Transmission and

Compression of Gas By Others, and sets out a tracking mechanism to

recover these CIG and Trailblazer Account No. 858 costs.

30.2 Establishment of Initial Tracking Level

(a) Except for contracts identified in subsection (c), Transporter

shall endeavor to reduce its Account No. 858 costs by

assignment of the CIG and Trailblazer Account No. 858

contracts.

(b) The CIG and Trailblazer costs reflected in Transporter's

Account No. 858 shall be recovered by a tracking mechanism as

set out in Section 30.3 of these General Terms and Conditions.

The level of costs to be tracked shall be based on Account No.

858 costs associated with transportation on Trailblazer and

sales conversion on CIG at a level not to exceed the current

level as of December 31, 1993, adjusted for known and

measurable changes, less the exclusions identified in

subsection (c). The initial level of collections under this

tracker shall be included as part of Transporter's motion

rates in Docket No. RP94-93-000.

mechanism shall exclude the costs of any upstream arrangements

with Trailblazer that Transporter was permitted to retain by

Commission orders in Docket No. RS92-19-000 for the period of

such retention.