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                                                                   EXHIBIT 10(l)

                                K N Energy, Inc.
                         1996 EXECUTIVE INCENTIVE PLAN
                                 March 1, 1996


I.      PLAN PURPOSE - To enhance K N's ability to achieve stated goals through
        at risk compensation that is contingent on accomplishment of primary
        corporate and division/personal objectives and subject to the absolute
        discretion of the Compensation Committee of the Board of Directors.


II.     PLAN ADMINISTRATION

        A.      The Plan shall be administered by the Compensation Committee of
                the Board of Directors appointed from among its own number
                (hereafter called the "Committee"). Membership of the Committee
                is governed by Board provisions. No member of the Committee
                shall be eligible for Plan participation while serving upon the
                Committee.

        B.      The Committee shall have full power to construe and interpret
                this Plan, and to establish and amend rules for its
                administration. Similarly the determination of officers who may
                participate under the Plan, and the amount of awards to such
                participants shall rest in the absolute discretion of the
                Committee. This Plan is administered for non-officer
                participants by the Incentive Plan Committee as appointed by
                CEO.

        C.      This Plan is administered without regard to race, color,
                religion, sex, national origin, age, disability, Vietnam Era
                Veteran, disabled veteran status, or citizenship status.


III.     PARTICIPATION

        A.      Prior to April 15, 1996, the Committee designates officer
                participants for the next year. The CEO designates non-officer
                participants. Participation in one year will not guarantee
                participation in following years.

        B.      Participants will be assigned to level of eligibility, based on
                degree of responsibility for corporate-wide results.

                Level I:         Responsible for K N-wide results

                Level II:        Responsible for multiple major segments

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                Level III:       Responsible for major support segment(s)
                                 within K N and selected key contributors

                Level IV:        Responsible for major segment(s) within K N and
                                 selected key contributors

                Level V:         Responsible for important segment(s) within K N
                                 and selected key contributors


IV.     BASIS OF AWARDS

        A.      Awards are to be based on a combination of corporate and
                division/personal goals and the extent to which superior
                personal performance contributed to goal achievement. The mix
                between such goals will depend on participant level.

                Level I:         90% corporate/10% personal.

                Level II:        Vary by participant with a minimum 80%
                                 corporate. The mix will be determined at the
                                 beginning of a Plan year.

                Level III:       Vary by participant with a minimum 70%
                                 corporate. The mix will be determined at the
                                 beginning of a Plan year and should consider
                                 the relative impact such participant has on a
                                 specific business segment/key contribution
                                 area versus the corporate results.

                Level IV:        Vary by participant with a minimum 60%
                                 corporate. The mix will be determined at the
                                 beginning of a Plan year and should consider
                                 the relative impact such participant has on a
                                 specific business segment/key contribution
                                 area versus the corporate results.

                Level V:         Vary by participant with a minimum 60%
                                 corporate. The mix will be determined at the
                                 beginning of a Plan year and should consider
                                 the relative impact such participant has on a
                                 specific business segment versus the corporate
                                 results.

        B.      Specific target objectives will be established each year for
                corporate performance and for division/personal performance.

                1.  Up to four corporate objectives may be established to focus
                    on attainment of primary goals.





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                2.  Up to four division/personal objectives may be established
                    and assigned appropriate weightings.

                3.  Prior to the start of each Plan year threshold, target and
                    optimum performance levels will be defined for each
                    objective. Particular emphasis will be placed on
                    performance oriented objectives, financial measures, cost
                    control measures and other measures linked to strategic
                    objectives designed to improve existing performance,
                    management effectiveness, productivity, safety, cost
                    control, service levels and efficiencies to clearly benefit
                    customers and thereby shareholders.

                4.  When individual performance objectives and annual financial
                    results are available following the conclusion of each
                    year, the Compensation Committee shall review the
                    performance relative to all objectives of Level I
                    participants (CEO reviews all other participants) and rate
                    the level of contribution as follows:

<TABLE>
<CAPTION>
                PERFORMANCE
                LEVEL                         GUIDELINE DEFINITION
                -----------                   --------------------
                <S>                           <C>

                Maximum                       Superior results produced -significantly above target.

                Target                        Overall results fully meet desired level of performance, which
                                              represented a "stretch" for the participant.

                Threshold                     Overall results fall somewhat short of Target performance in the absence
                                              of any significant external business conditions.

                Minimum                       Unacceptable progress toward achieving performance objectives.
</TABLE>

        C.  Corporate Goals for 1996

                1.       Achieve primary objective of net operating income per
                         share excluding effect of new equity issued during the
                         year:

<TABLE>
<CAPTION>
                                                               1996
                                                               ----
                             <S>                               <C>
                             Threshold                =        1.93
                             Target                   =        2.04
                             Maximum                  =        2.14
</TABLE>





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                2.       Achieve consolidated return on average equity
                         excluding new equity issued during the year:

<TABLE>
<CAPTION>
                                                               1996
                                                               ----
                             <S>                               <C>
                             Threshold                =        13.10%
                             Target                   =        13.80%
                             Maximum                  =        14.50%
</TABLE>

                3.       Achieve annual operating income:

<TABLE>
<CAPTION>
                                                               1996
                                                               ----
                             <S>                           <C>
                             Threshold            =        $120.0 million
                             Target               =         125.0 million
                             Maximum              =         130.0 million
</TABLE>

                4.       Achieve the objectives consistent with our corporate
                         values without compromising employee or public safety,
                         or the investments that will serve as the foundation
                         for future growth.


V.      SIZE OF INCENTIVE PAYMENTS

        A.      The corporate incentive and the division/personal incentive are
                entirely separate and not contingent on the performance level
                of the other. However, each is reviewed based on the extent to
                which superior personal performance contributed to goal
                achievement.

        B.      The 1996 incentive targets, expressed as a percent of the
                officer participant's 1996 salary range midpoint are:

<TABLE>
<CAPTION>
                      Level I   Level II     Level III  Level IV   Level V
                      ----------------------------------------------------
                                          Strategic Team Officers
            <S>                 <C>          <C>          <C>         <C>
            Threshold            10%          10%          10%          5%
            Target               30%          20%          15%         10%
            Maximum              45%          30%          20%         15%
</TABLE>

            These targets require adjustment to reflect the appropriate
            corporate and division/personal allocation; for instance, a Level
            IV participant with a 60% corporate and 40% division/personal goal
            allocation would have incentive potential of:
<TABLE>
<CAPTION>
                                              Division/
                         Corporate            Personal         Combined
                         ----------------------------------------------
        <S>                 <C>                  <C>           <C>
        Threshold             6%                   4%           10%
        Target                9%                   6%           15%
        Maximum              12%                   8%           20%
</TABLE>





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        C.      Incentive amounts may be prorated based on performance between
                the stated Threshold, Target and Maximum levels. No payment
                will be made for performance below the Threshold level.

        D.      Non-officer participant incentive targets are based on  above
                percents and applied to the participant's ending annualized
                1996 salary.

VI.     DISCRETIONARY AWARDS - In addition to the incentive award established
        above, the Committee, in its sole discretion, may grant an additional
        award to any or all participants to recognize exceptional contribution
        not anticipated at the time the annual objectives were developed. The
        amount of this award would not exceed 10% of the salary of the
        participant receiving the award.

VII.    TIMING OF PAYMENTS

        A.      At risk, contingent compensation will be paid, in cash, as soon
                as practical after individual performance has been reviewed and
                fiscal results are available following the end of the year to
                participants who are active employees as of the last day of the
                year. Payments will be prorated for participants who become
                totally disabled or retire during the year, based on the
                portion of the year that they were active employees. Incentive
                payments will be paid to the estate of a deceased participant.

        B.      Participants may elect, before the beginning of a year, to
                defer all or a portion of their awards earned, if any. Amounts
                deferred shall accrue interest at a rate to be determined at
                the time the deferral is designated. Participants electing to
                defer will be unsecured creditors of K N, with respect to such
                deferrals.

VIII.   PLAN EFFECTIVE DATE

        A.      The Plan shall be effective for 1996 if ratified by the Board
                of directors prior to April 15, 1996.

        B.      The Plan shall remain in effect for 1996, subject to
                modifications by the Board.

IX.     OTHER ITEMS

        A.      Not a Contract of Employment. This Plan shall not be deemed to
                constitute a contract of employment, nor shall





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                any provision hereof restrict the right of K N Energy, Inc. (or
                its subsidiaries) to discharge a participant(s) at will.

        B.      Controlling Law. This Plan and its provisions shall be governed
                by, and construed in accordance with, the Laws of the State of
                Colorado.

        C.      Number and Gender. Wherever appropriate herein, words used in
                the singular shall include the plural and the plural shall
                include the singular. The masculine gender where appearing
                herein shall be deemed to include the feminine gender.

        D.      Unfunded obligation. The obligation to pay amounts under this
                Plan is an unfunded obligation of K N Energy, Inc. (including
                its subsidiaries), and no such obligation shall create a trust
                or be deemed to be secured by any pledge or encumbrance on any
                property of K N Energy, Inc. (including its subsidiaries).

        E.      Non-Alienation. Participant(s) shall not have any right to
                pledge, hypothecate, anticipate or assign this Plan or the
                rights hereunder, except by will or the laws of descent and
                distribution.

        F.      Severability. Any provision in this Plan that is prohibited or
                unenforceable in any jurisdiction under applicable law shall,
                as to such jurisdiction, be ineffective only to the extent of
                such prohibition or unenforceability without invalidating or
                affecting the remaining provisions hereof, and any such
                prohibition or unenforceability in any jurisdiction shall not
                invalidate or render unenforceable such provision in any other
                jurisdiction.





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