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. 137 Original Sheet No. 137 : Effective






(4) To the extent less volumes have been

delivered on any Day which are not accounted for by applying steps

(1) through (3), such shortfall shall be allocated for that Day to

the point operator's account and shall be subject to charges under

Section 9 of these General Terms and Conditions [it being

understood that the allowable balancing service to be provided

without additional charge under Section 9 has already been provided

under step (2) above].


(d) To be eligible for a Point Operator Allocation

Agreement, a prospective point operator must meet the same

creditworthiness standards as a Shipper. Further, KMIP and the

point operator must not have previously entered into such an

agreement which was terminated because of point operator's failure

to perform.


(e) Unless otherwise agreed by KMIP or otherwise

provided herein, cash-out procedures shall not apply to volumes in

a point operator's account; provided, however, that any volume

remaining in operator's account upon termination of a Point

Operator Allocation Agreement shall be cashed-out based on the

cash-out prices for the last Month such agreement was in effect.

The point operator may transfer gas out of its account by

submitting nominations for transportation subject to ordinary

confirmation and scheduling procedures.


(f) KMIP may cancel any Point Operator Allocation

Agreement in the event that point operator's account exceeds a

reasonable level in relation to the MDQ at the point(s) covered, if

the point operator does not take reasonable steps to rectify

imbalances on a timely basis, or if the point operator exceeds with

unreasonable frequency the 2% Monthly restriction under this

Section. Nothing herein is intended to restrict KMIP's right to

terminate in accordance with its terms any Point Operator

Allocation Agreement entered into hereunder, including without

limitation the right to terminate because of point operator's

failure to perform consistent with its obligations under the Point

Operator Allocation Agreement.


(g) Aggregators of supply at any point which do not

control physical operation of the point may request that they be

allowed to enter into allocation agreements similar to Point

Operator Allocation Agreement(s) as to specified volumes or