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. 148L Original Sheet No. 148L : Effective

RATE SCHEDULE PALS

6.3

(a) Shipper shall reimburse Transporter within five (5) days

after costs have been incurred by Transporter for all fees required by

the FERC or any regulatory body including, but not limited to, filing,

reporting, and application fees to the extent such fees are

specifically related to service for that Shipper hereunder and are not

generally applicable fees (such as general rate case filing fees).

(b) If Transporter constructs, acquires or modifies any

facilities to perform service hereunder, then, as specified in an

agreement related thereto between the parties, either:

(1) Shipper shall reimburse Transporter for the cost of

such facilities or facility modifications as described in

Section 5.3(a) of the Interruptible Transportation service

Rate Schedule of this Tariff; or

(2) Transporter shall assess a monthly charge reflecting

such facility costs.

6.4

(a) Transporter shall have the unilateral right to file with

any appropriate regulatory authority and make changes effective in:

(1) the rates and charges applicable under this Rate Schedule PALS,

including both the level and design of such rates and charges; and/or

(2) the terms and conditions of this Rate Schedule PALS. Transporter

agrees that Shipper may protest or contest the aforementioned filings,

or may seek authorization from duly constituted regulatory authorities

for such adjustment of Transporter's existing FERC Gas Tariff as may be

found necessary to assure that its provisions are just and reasonable.

(b) If, at any time and from time to time, the FERC or any

other governmental authority having jurisdiction in the premises

allows or permits Transporter to collect, or to negotiate to

collect, a higher rate for the service hereunder, the rate shall,

subject to any contrary provision of the PALS Agreement or PALS RO,

be increased to the highest such rate. Should additional

documentation be required in order for Transporter to collect such

highest rate, Shipper shall execute or provide such documentation

within fifteen (15) days after a written request by Transporter.

If, at any time and from time to time, the FERC or any other

governmental authority having jurisdiction in the premises requires

Transporter to charge a lower rate for service hereunder, the rate

shall be decreased to such reduced rate.