Share Distributions

9 Months Ended

Sep. 30, 2011

3. Share Distributions

Under the terms of our limited liability company agreement, except in connection with our liquidation, we do not pay distributions on our shares in cash but instead make distributions on our shares in additional shares or fractions of shares. At the same time KMP makes a distribution on its common units and i-units, we distribute on each of our shares that fraction of a share determined by dividing the amount of the cash distribution to be made by KMP on each common unit by the average closing market price of a share determined for the ten-trading day period ending on the trading day immediately prior to the ex-dividend date for our shares. The following table presents share distributions we have paid or declared in 2011.

	Share Distributions
	Shares Distributed Per Outstanding Share	Equivalent Distribution Value Per Share(a)		Total Number of Additional Shares Distributed
Distribution Date
February 14, 2011	0.017393	$	1.13	1,598,556
May 13, 2011	0.017102	$	1.14	1,599,149
August 12, 2011	0.017895	$	1.15	1,701,916
November 14, 2011(b)	0.017579	$	1.16	1,701,781 (c)

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(a)	This is the cash distribution paid to each common unit of KMP during the quarter indicated and is used to calculate our distribution of shares as discussed above. Because of this calculation, the market value of the shares distributed on the date of distribution may be less or more than the cash distribution per common unit of KMP.
(b)	Distribution declared on October 16, 2011 and payable to shareholders of record as of October 31, 2011.
(c)	Distribution determined by dividing $1.16, the cash amount to be distributed per KMP common unit by $65.986, the average of our shares’ closing market prices from October 13-26, 2011, the ten consecutive trading days preceding the date on which our shares began to trade ex-dividend under the rules of the New York Stock Exchange.