Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-A

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

Original Sheet No. 148U.03 Original Sheet No. 148U.03 : Effective

RATE SCHEDULE S-PALS

4. VALID REQUESTS FOR S-PALS AGREEMENT(S) AND FOR S-PALS RO(S)

4.1 A request for service under this Rate Schedule S-PALS shall be

valid as of the date received if it complies with this Section 4

and contains adequate information on all of the items specified

in Sections 4.3(a) and 4.3(b), subject to any necessary

verification of such information and to the following:

(a) A request shall not be valid and Transporter shall not be

required to grant any such request: (1) which could in

Transporter's judgment interfere with efficient operation

of its system or with service to any firm Shipper; (2)

which would require the construction, modification,

expansion, or acquisition of any facilities to enable it to

perform such services; provided, however, that Transporter

may agree in its reasonable discretion to construct,

modify, expand, or acquire any facilities; (3) unless and

until Shipper has provided Transporter with the information

required in Section 4.2 hereof and the assurances required

under Section 1.3 hereof; (4) if Transporter determines,

based on the credit analysis referenced in Section 4.2(d),

that Shipper does not possess sufficient financial

stability to make it reasonably likely the service provided

hereunder will be paid for on a timely basis; (5) if the

service requested would not comply with this Rate Schedule

S-PALS; or (6) if the service requested is at less than the

applicable maximum rate; provided, however, that

Transporter may agree to provide service hereunder at a

discount consistent with this Rate Schedule S-PALS.

Nothing herein is intended to govern the scheduling and

curtailment of service once a request for service has been

granted pursuant to Section 4 hereof and while Agreements

under this Rate Schedule are in effect. Such matters are

governed by Section 3 of this Rate Schedule and the

applicable General Terms and Conditions of this Tariff.

(b) Transporter may agree, however, to construct, modify,

expand or acquire facilities to perform service under this

Rate Schedule S-PALS on a non-discriminatory basis whenever

such is deemed, in Transporter's reasonable judgment, to be

economically, operationally and technically feasible,

subject to the following conditions:

(1) Transporter has received an executed revised service

agreement from existing and prospective Shipper(s)

requesting such additional facilities or expansion of

capacity;