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. 148M Original Sheet No. 148M : Effective

RATE SCHEDULE PALS

6.5 Transporter may from time to time and at any time, upon twenty-

four (24) hours' verbal or written notice, subject to any

provisions on discounting in the PALS Agreement or PALS RO,

charge any individual Shipper for service under this Rate

Schedule PALS a rate which is lower than the applicable maximum

rate set forth in this Tariff; provided, however, that such rate

charged may not be less than the applicable minimum rate for

service under Rate Schedule PALS set forth in this Tariff.

Unless otherwise agreed in the PALS Agreement or PALS RO,

Transporter may at any time further change such rate (subject to

any restrictions as to maximum or minimum rates set out in this

Tariff, the PALS Agreement and/or PALS RO) upon twenty-four (24)

hours' verbal notice to Shipper, which notice shall be confirmed

in writing. Such notification shall specifically state the

effective date of such rate change and the quantity of gas so

affected. Transporter shall file with FERC any and all reports

as required by FERC's Regulations with respect to the institution

or discontinuance of any discount.

6.6 All revenues and gas in kind collected by Transporter as a result

of providing service under this Rate Schedule PALS shall be

retained by Transporter unless Transporter has otherwise

explicitly agreed on a different disposition of such amounts.

Where crediting or refund mechanisms apply under other

provision(s) of this Tariff or pursuant to effective FERC orders

or settlements, such mechanisms shall supersede this Section to

the extent necessary to carry out such provision(s).