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. 148F Original Sheet No. 148F : Effective

RATE SCHEDULE PALS

4.2 In addition to the information provided in the PALS Agreement,

Shipper also shall provide the following information to Transporter

with its initial request for service:

(a) The Park and Loan Service provided for under this Rate

Schedule PALS shall be performed under Part 284 of FERC's Regulations.

Shipper shall only tender gas under this Rate Schedule PALS to the

extent service hereunder would qualify under the applicable statutes,

regulations, FERC orders and the blanket certificate authorizing

service by Transporter under this Rate Schedule PALS. For service

under Subpart B of Part 284, Shipper shall provide to Transporter with

its initial request for service appropriate certification, including

sufficient information in order for Transporter to verify that the

service qualifies under Subpart B of Part 284 of the Regulations.

Where required by FERC's Regulations, Shipper shall cause the

intrastate pipeline or local distribution company on whose behalf the

service will be provided to submit any necessary certification.

Shipper shall provide the actual end user purchaser name(s) to

Transporter if Transporter must provide them to the FERC.

(b) Shipper will warrant for itself, its successors and

assigns, that it will at the time of delivery to Transporter have title

to all gas free and clear of all liens, encumbrances, and claims

whatsoever. Shipper will indemnify Transporter and hold it harmless

from all suits, actions, debts, accounts, damages, costs, losses, and

expenses arising from or out of adverse claims of any or all persons or

parties to said gas, including claims for royalties, taxes, license

fees or charges applicable to such gas or to the delivery thereof to

Transporter under this Rate Schedule; and

(c) Shipper has entered into all necessary arrangements to

assure that upstream and downstream transportation, if any, will be in

place prior to the commencement of service on Transporter's pipeline.