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First Revised Sheet No. 73 First Revised Sheet No. 73 : Superseded

Superseding: Substitute Original Sheet No. 73

GENERAL TERMS AND CONDITIONS FOR SERVICE - continued

30.3 Tracking Rate Adjustments

(a) The initial tracking amount determined under Section 30.2 of

these General Terms and Conditions shall become effective on

the date permitted by the Commission. Effective July 1, 1995

and each subsequent twelve month period thereafter while this

Section 30 is in effect, Transporter shall adjust its rates to

reflect (1) changes in the level of annual costs in Account

No. 858 as determined under subsection (b); and (2) buyout or

buydown costs as determined pursuant to Section 30.4 of these

General Terms and Conditions. Annual tracking filings

submitted in accordance with this Section shall become

effective, subject to refund, on the designated effective

dates. Any review of a subsequent annual filing may

encompass issues of the eligibility and prudence of the

changes from the previously effective level of tracked costs.

(b) For the CIG and Trailblazer Account No. 858 costs tracked

under this Section 30, changes from the prior tracking level

for Account No. 858 costs shall be based on a comparison

between the known and measurable annual costs of reservation,

demand, commodity and other fixed charges under Account No.

858 contracts and the level of such costs reflected in the

most recent prior tracking filing. Buyout or buydown costs

may be reflected by an amortization consistent with Section

30.4 of these General Terms and Conditions. Such cost changes

shall be reflected in a tracking filing made by Transporter in

its annual filings specified in subsection (a).