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. 148D Original Sheet No. 148D : Effective

RATE SCHEDULE PALS

4. VALID REQUESTS FOR PALS AGREEMENT(S) AND FOR PALS RO(S)

4.1 A request for service under this Rate Schedule PALS shall be

valid as of the date received if it complies with this Section 4 and

contains adequate information on all of the items specified in Sections

4.3(a) and 4.3(b), subject to any necessary verification of such

information and to the following:

(a) A request shall not be valid and Transporter shall not be

required to grant any such request: (1) which could in Transporter's

judgment interfere with efficient operation of its system or with

service to any firm Shipper; (2) which would require the construction,

modification, expansion, or acquisition of any facilities to enable it

to perform such services; provided, however, that Transporter may agree

in its reasonable discretion to construct, modify, expand, or acquire

any facilities; (3) unless and until Shipper has provided Transporter

with the information required in Section 4.2 hereof and the assurances

required under Section 1.3 hereof; (4) if Transporter determines, based

on the credit analysis referenced in Section 4.2(d), that Shipper does

not possess sufficient financial stability to make it reasonably likely

the service provided hereunder will be paid for on a timely basis; (5)

if the service requested would not comply with this Rate Schedule PALS;

or (6) if the service requested is at less than the applicable maximum

rate; provided, however, that Transporter may agree to provide service

hereunder at a discount consistent with this Rate Schedule PALS.

Nothing herein is intended to govern the scheduling and curtailment of

service once a request for service has been granted pursuant to Section

4 hereof and while Agreements under this Rate Schedule are in effect.

Such matters are governed by Section 3 of this Rate Schedule and the

applicable General Terms and Conditions of this Tariff.

(b) Transporter may agree, however, to construct, modify,

expand or acquire facilities to perform service under this Rate

Schedule PALS on a non-discriminatory basis whenever such is deemed, in

Transporter's reasonable judgment, to be economically, operationally

and technically feasible, subject to the following conditions:

(1) Transporter has received an executed revised service

agreement from existing and prospective Shipper(s) requesting

such additional facilities or expansion of capacity;

(2) Transporter does not have physical facilities or

adequate capacity in the system to accommodate requests for

service of existing and prospective Shippers accepted by

Transporter pursuant to Section 4.1 hereof;