Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-A

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

Original Sheet No. 148E Original Sheet No. 148E : Effective

RATE SCHEDULE PALS

(3) Transporter and Shipper enter into a facilities

agreement, which is subject to the provisions of Section 2.1 of

the Interruptible Transportation service Rate Schedule of this

Tariff.

(4) The nature, extent and timing of facilities required

shall be at the reasonable discretion of Transporter; and

(5) Transporter receives acceptable assurance of

financial reliability from any Shipper requesting capacity.

Transporter shall maintain a separate record of the nature and

costs of such facilities and assess new facility charges in

accordance with Section 5.3(a) of the Interruptible

Transportation service Rate Schedule of this Tariff.

(c) Transporter shall promptly notify Shipper if it cannot

satisfy an otherwise valid request, in whole or in part. Any request

shall be null and void unless it is substantially complete and complies

with this Rate Schedule. In the event a request is substantially but

not entirely complete, Transporter shall inform Shipper in writing of

the specific items needed to complete the PALS Agreement, after which

Shipper shall have fifteen (15) days to provide the specified

information. In the event such information is not received within

fifteen (15) days, Shipper's request shall be null and void.

(d) Transporter shall tender a PALS Agreement to Shipper for

execution when Shipper's request for service is accepted. Unless

waived by Transporter, a request for service shall be invalid if

Shipper fails to execute and tender a PALS Agreement hereunder within

ten (10) days after the PALS Agreement has been tendered by Transporter

for execution. An executed PALS RO must be submitted to Transporter

prior to commencement of service.