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.14 Original Sheet No. 148U.14 : Effective

RATE SCHEDULE S-PALS

7. QUANTITY

Each S-PALS RO shall specify in Dth the MAQ RO and a daily schedule of

the quantities (including the MDQ RO) to be parked and/or loaned under

the specific transaction. The daily schedule of returned volumes by

the Shipper or Transporter shall also be specified in the S-PALS RO.

The quantities may be specified as a range of volumes (maximum and

minimum aggregate and daily quantities and the related time periods) to

be parked and/or loaned and returned, and the schedule may include the

flexibility to do either a park or a loan within specified volume and

time limits. The schedule may provide for flexibility in total volumes

and in the daily volumes parked and/or loaned, in the timing of the

park or the loan (or any portion thereof), in the duration of the park

and/or loan (or portion thereof), and/or in the timing of the

completion of the park or loan (or portion thereof) by the return of

gas to the Shipper or to Transporter, and shall specify the limits of

the flexibility allowed. Subject to the flexibility specified in the

S-PALS RO, the MDQ RO shall be the maximum quantity Transporter is

obligated, on an interruptible basis, to receive from or deliver to

Shipper hereunder on the specified day. The MAQ RO shall be the

maximum aggregate quantity Transporter is obligated to hold or loan for

the account of Shipper hereunder on an interruptible basis for the

specific transaction covered by the S-PALS RO. The minimum aggregate

and daily volumes to be parked and/or loaned and returned on an

interruptible basis shall also be specified in the S-PALS RO schedule.

The sum total of a Shipper's MAQ ROs and MDQ ROs shall not exceed the

MAQ and MDQ specified in the S-PALS Agreement. If a Shipper exceeds

the timing parameter in the applicable S-PALS RO (unless such failure

is due to Transporter not confirming a nomination properly submitted),

it shall be subject to overrun charges consistent with Section 6.2 of

this Rate Schedule.

8. MANDATORY BALANCING

8.1 Mandatory Balancing shall apply in the following instances: (a)

at the end of the term specified in any applicable S-PALS

Agreement or S-PALS RO; (b) where the Shipper fails to comply

either with the requirements of Transporter's notice referenced

in Sections 3 and 8.3(b) hereof; or (c) where Shipper fails to

comply with the schedule of activities set forth in the

applicable S-PALS RO and the deviation has not been agreed to and

confirmed by Transporter.