Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-A

Effective Date: 03/01/2003, Docket: RP03-245-000, Status: Effective

Original Sheet No. 148U.01 Original Sheet No. 148U.01 : Effective

RATE SCHEDULE S-PALS

2.2 Under this Rate Schedule S-PALS, Transporter shall only park gas

or loan gas to the extent Transporter determines that such

actions are not detrimental to its ability to satisfy any of its

existing obligations with higher priority service or to meet

system operational needs. Transporter may, based on its

reasonable determination of its operational capability and in a

non-discriminatory manner, interrupt or decline to schedule any

or all of the services hereunder and, if such actions are

required to avoid interference with firm service or to protect

the integrity of the system, will do so prior to invoking the

procedures of Section 29.2, Operational Parameters, of the

General Terms and Conditions of this Tariff and subject to

Section 8 hereof.

2.3 All mutually agreeable points of receipt and delivery on

Transporter's system are available on a non-discriminatory basis

for service under this Rate Schedule S-PALS. Unless an

alternative point is agreed upon by Transporter and the Shipper,

the same point must be utilized to initiate and to complete a

specific park and loan transaction. If an alternative point is

agreed upon, Shipper must pay for transportation service between

the agreed-upon receipt and delivery points. The specific

point(s) for a park or loan shall be set forth in the applicable

S-PALS RO.

2.4 Subject to the provisions of Section 2.2 above, Storage Park

and Loan Services available under this Rate Schedule S-PALS

include:

(a) Park Service: shall consist of Transporter's receipt of a

quantity of natural gas at the designated point(s) on the

designated date(s), requested by Shipper under an

S-PALS RO and approved by Transporter; Transporter's

holding of such parked quantity of gas for Shipper's

account and Transporter's redelivery of the parked quantity

of gas to Shipper at the designated point(s) and on the

designated date(s) set forth in such S-PALS RO.

(b) Loan Service: shall consist of Transporter lending a

specified quantity of natural gas, requested by Shipper and

approved by Transporter, from designated point(s) set forth

in Shipper's S-PALS RO, and the Shipper's redelivery of and

Transporter's acceptance of such volumes for Shipper's

account at the designated point(s) on the designated

date(s) set forth in such S-PALS RO.