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.13 Original Sheet No. 148U.13 : Effective

RATE SCHEDULE S-PALS

(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 S-PALS Agreement or S-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.

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 S-PALS Agreement or S-PALS RO,

charge any individual Shipper for service under this Rate

Schedule S-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 S-PALS set forth in this Tariff.

Unless otherwise agreed in the S-PALS Agreement or S-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 S-PALS Agreement and/or S-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 S-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).