Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-A

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Effective Date: 07/01/2001, Docket: RP01-438-002, Status: Effective

Substitute Original Sheet No. 148B Substitute Original Sheet No. 148B : Effective

RATE SCHEDULE PALS

2.2 Under this Rate Schedule PALS, Transporter shall only park gas or

loan gas to the extent Transporter determines that such actions

are not detrimental to its ability to satisfy any of its existing

obligations with higher priority service or to meet system

operational needs. Transporter may, based on its reasonable

determination of its operational capability and in a non-

discriminatory manner, interrupt or decline to schedule any or

all of the services hereunder and, if such actions are required

to avoid interference with firm service or to protect the

integrity of the system, will do so prior to invoking the

procedures of Section 29.2, Operational Parameters, of the

General Terms and Conditions of this Tariff and subject to

Section 8 hereof.

2.3 All mutually agreeable points of receipt and delivery on

Transporter's system are available on a non-discriminatory basis

for service under this Rate Schedule PALS. Unless an alternative

point is agreed upon by Transporter and the Shipper, the same

point must be utilized to initiate and to complete a specific

park and loan transaction. If an alternative point is agreed

upon, Shipper must pay for transportation service between the

agreed-upon receipt and delivery points. The specific point(s)

for a park or loan shall be set forth in the applicable PALS RO.

2.4 Subject to the provisions of Section 2.2 above, Park and Loan

Services available under this Rate Schedule PALS include:

(a) Park Service: shall consist of Transporter's receipt of a

quantity of natural gas at the designated Receipt Point(s)

on the designated date(s), requested by Shipper under a

PALS RO and approved by Transporter; Transporter's holding

of such parked quantity of gas for Shipper's account and

Transporter's redelivery of the parked quantity of gas to

Shipper at the designated Delivery Point(s) and on the

designated date(s) set forth in such PALS RO.

(b) Loan Service: shall consist of Transporter lending a

specified quantity of natural gas, requested by Shipper and

approved by Transporter, from designated Delivery Point(s)

set forth in Shipper's PALS RO, and the Shipper's

redelivery of and Transporter's acceptance of such volumes

for Shipper's account at the designated Receipt Point(s) on

the designated date(s) set forth in such PALS RO.

2.5 Transporter will post on its Interactive Web Site the

availability of PALS from time to time.