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

Original Sheet No. 76 Original Sheet No. 76 : Superseded





31.2 Terms Governing. For the purpose of minimizing operational

conflicts between various natural gas facilities with respect to

the delivery of gas to and from Transporter's facilities,

Transporter is willing to negotiate and execute OBAs with

appropriate parties that operate natural gas facilities

interconnecting with Transporter's system (any such party will be

referred to herein as the "OBA Party"). Such OBAs shall specify

the gas custody transfer procedures to be followed by Transporter

and the OBA Party for the confirmation of scheduled quantities to

be received by Transporter at Point(s) of Receipt and delivered by

Transporter at Point(s) of Delivery. Such OBAs will provide that

any variance between actual quantities and scheduled and confirmed

quantities for any day shall be resolved pursuant to the terms of

the OBA. To facilitate such determination of variances on a timely

basis, Transporter and the OBA Party will agree in the OBA on

necessary measurement and accounting procedures. Transporter shall

post on its EBB those Points of Receipt and Points of Delivery

which are subject to an OBA. Transporter will also provide to any

party upon request a copy of any executed OBA. A form of OBA is

contained among the forms of service agreements contained in this



31.3 Prerequisite to Execution. It is Transporter's intent to negotiate

and execute OBAs on a non-discriminatory basis with any OBA Party.

However, Transporter shall have no obligation to negotiate and

execute OBAs with any Party that:


(a) is not creditworthy as determined pursuant to Section 22.8 of

these General Terms and Conditions, substituting the term "OBA

Party" for "Shipper" for this purpose;


(b) does not maintain a gas control operation which is staffed on

a continuous, around-the-clock basis;


(c) does not have electronic flow measurement equipment to which

Transporter has access at the interconnect points which are

proposed to be subject to the OBA;