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.09 Original Sheet No. 148U.09 : Effective

RATE SCHEDULE S-PALS

5. TERM

5.1 The term of service hereunder shall be set forth in the S-PALS

Agreement between Shipper and Transporter. The S-PALS RO shall

have a separately stated term or terms applicable to a particular

transaction, which term may not extend beyond the term of the

related S-PALS Agreement; provided, however, that both the S-PALS

Agreement and related S-PALS RO(s) may include a buyout

provision, permitting early termination by Shipper or Transporter

subject to a mutually agreed upon exit fee. Upon termination of

any S-PALS Agreement and of any S-PALS RO, service by Transporter

to Shipper thereunder shall be terminated and automatically

abandoned.

5.2 Transporter may terminate any S-PALS Agreement if Transporter is

required by the FERC or some other agency or court to provide

service for others utilizing the interruptible system capacity or

capabilities required for service under such S-PALS Agreement, or

if Transporter ceases (after receipt of any requisite regulatory

authorization) to offer service of the type covered by the S-PALS

Agreement. Settlement of such terminated agreement shall be

pursuant to Section 8.4.

6. RATE

6.1 (a) For the Storage Park and Loan Service rendered to Shipper

under this Rate Schedule S-PALS, Shipper shall pay

Transporter each month the sum of the following charges:

(i) an Initial Rate for each unit of gas tendered for

park or taken for loan during that month;

(ii) a Park/Loan Balance Rate for each unit of gas which

is parked or loaned under this Rate Schedule S-PALS

for that month (such charge shall be calculated on

the basis of the daily ending balance for each S-PALS

RO for each day of the month); and