Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-A

Effective Date: 07/01/2001, Docket: RP01-438-000, Status: Effective

Original Sheet No. 148C Original Sheet No. 148C : Effective

RATE SCHEDULE PALS

3. NOMINATIONS AND SCHEDULING

3.1 It shall be Shipper's sole responsibility to provide Transporter

with daily nominations of the quantity of gas to be received or

delivered at the Receipt or Delivery point(s) under the

applicable PALS RO. Nominations for any day or for any

nomination cycle must be consistent with the PALS RO. It shall

also be Shipper's responsibility to cause gas to be delivered to

Transporter and to cause gas to be received from Transporter in

accordance with the PALS RO. Nominations shall be subject to

confirmation and scheduling in accordance with the General Terms

and Conditions of this Tariff. If a nomination for payback on a

loan, or withdrawal on a park is consistent with the PALS RO but

cannot be confirmed by Transporter, the Shipper must continue to

nominate on subsequent days until Transporter can confirm the

nomination, unless the parties agree on a revised PALS RO.

Service under Rate Schedule PALS is provided on an interruptible

basis.

3.2 Priorities of service for the purposes of scheduling and

curtailment shall be governed by Sections 22.6 and 16.3,

respectively, of the General Terms and Conditions of this Tariff.

3.3 In the event it is necessary to decline to schedule or to

interrupt, curtail or suspend service under PALS because of

operational conditions or to satisfy obligations with a higher

priority, Transporter shall provide actual notice to Shipper. In

that event, Shipper must comply with the directive(s) contained

in Transporter's notification within the time specified.

3.4 If Shipper fails to comply with the requirements set out in a

notification under Section 3.3 above, then Section 8 of this Rate

Schedule PALS shall apply.