Kinder Morgan Illinois Pipeline LLC

Original Volume No. 1

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Effective Date: 12/01/2007, Docket: RP08- 34-000, Status: Effective

Original Sheet No. 115 Original Sheet No. 115 : Effective








KMIP's application of the priorities hereunder shall be

subject to the actions of other transporters delivering or receiving

gas on behalf of Shippers.




(a) Irrespective of any otherwise applicable priority,

KMIP may suspend service to any Shipper which is delinquent in

payments under any Agreement, subject to the following conditions:


(1) KMIP shall give Shipper written notice of the

delinquency and of KMIP's intent to suspend service if the

deficiency is not cured. If delinquency is not remedied within ten

(10) Days of such notice, KMIP may suspend service. KMIP shall

simultaneously provide written notice to the Commission of any such



(2) If a Shipper which has been deficient in

payment hereunder is again deficient in payment within six (6)

Months after the prior deficiency, then KMIP may suspend service to

such Shipper within five (5) Business Days after providing notice

hereunder unless Shipper remedies the deficiency within that time



(3) A Shipper shall not be obligated to pay any

reservation or demand charges for suspended service attributable to

the period when that service is suspended.


(b) In addition to suspension, KMIP may terminate

service if the Shipper fails to remedy a delinquency in payment. Any

such termination requires thirty (30) days' prior notice to Shipper

and to the Commission. To avoid termination, the Shipper must remedy

the deficiency within this notice period. Such notice may be given

simultaneously with the initial notice under Section 2.7(a)(1) of

these General Terms and Conditions.


(c) In the event of a good faith billing dispute,

withholding of payment for the amount in dispute by Shipper shall

not be considered a delinquency in payment, consistent with Section

11 of these General Terms and Conditions, and will not result in

suspension or termination of service.


(d) KMIP may not take any action under this Section 2.7

which conflicts with any order of the U.S. Bankruptcy Court.