Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-A

Effective Date: 06/01/2003, Docket: RP00-343-006, Status: Effective

Second Revised Sheet No. 148K Second Revised Sheet No. 148K : Effective

Superseding: Original Sheet No. 148K

RATE SCHEDULE PALS

(1) By mutual agreement between Transporter and Shipper,

which is consistent with the pro forma agreement set out in this

Tariff, discounts or negotiated rates may be limited to specific

volumes and/or specific periods.

(2) If a Shipper has submitted a nomination for a payback

on a loan or a withdrawal on a park, and that nomination is consistent

with the PALS RO but is not confirmed by Transporter, the Park/Loan

Balance Rate shall only be assessed as if the nomination had been

confirmed.

(b) Shipper shall pay any other applicable charges, penalties

and fees set out in this Rate Schedule PALS or the General Terms and

Conditions of this Tariff. Deviations from the approved PALS RO

nominated volumes when compared to the allocated volumes will be

assessed cashout charges under Section 5.2(b) of the IT Rate Schedule

of this Tariff.

rates set forth in this Tariff applicable to Rate Schedule PALS, which

rates are hereby incorporated herein, unless a lower rate for the charge

in subsection (a) is specified in the PALS RO. However, where a Shipper

has agreed to pay a Negotiated Rate or a rate under a Negotiated Rate

Formula, the rates assessed hereunder shall be governed by Section 38 of

the General Terms and Conditions of this Tariff. A request for service

at a Negotiated Rate or a rate under a Negotiated Rate Formula shall

specify the Negotiated Rate or Negotiated Rate Formula on which the

Shipper is willing to agree.

(d) The charges referenced herein cover only Park and Loan

Services. Shipper must contract separately for any transportation

service required for Shipper to move gas to or away from the point(s)

specified in the PALS RO.

6.2 Authorized overrun charges apply if a Shipper nominates and

Transporter confirms volumes in excess of the approved MAQ and/or

MDQ in the PALS agreement, or if Shipper fails to comply with any

quantity or timing parameter in a PALS RO (unless the failure

results from Transporter not confirming a nomination properly

submitted). Authorized overrun charges will be assessed at the

maximum PALS rate, unless otherwise agreed to in writing by

Transporter.