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.15 Original Sheet No. 148U.15 : Effective

RATE SCHEDULE S-PALS

8.2 Transporter shall require Mandatory Balancing effective the next

day prior to issuing Operational Flow Orders pursuant to the

notice provisions of Section 29.2 of the General Terms and

Conditions of this Tariff, if Transporter reasonably determines

that doing so would facilitate system operations and minimize the

frequency and severity of Operational Flow Orders in the affected

region(s).

8.3 (a) In the event that Transporter notifies an S-PALS Shipper

under Section 3 hereof, such notice shall specify the

parked balance to be removed or the loaned balance to be

returned, up to the full MAQ, and the timeframe within

which the balance must be effectuated, but the specified

timeframe shall not be less than three (3) days (in one-

third daily increments) from the date of notification.

Transporter may allow additional time for contract

balancing when operational conditions permit.

Notification shall first be provided by telephone and then

by facsimile, by e-mail or in writing. General notices

will be posted on Transporter's Interactive Web Site. In

instances when notification is required during times other

than normal business hours, Transporter will provide such

notification by telephone. To the extent Shipper fails to

comply with such notice, the S-PALS RO shall terminate and

the provisions of Section 8.4 shall apply.

(b) In the event that a Shipper fails to comply with the

schedule of activities set forth in the applicable S-PALS

RO, Transporter shall notify Shipper, and the S-PALS RO

shall be subject to termination in accordance with the

terms of such notice. The provisions of Sections 8.4(a)

and 8.4(b) shall then apply.

8.4 (a) In the event that Shipper still has gas parked at the end

of its contract term or because of failure to comply with

the notice pursuant to Sections 3 and 8.3 above, the

remaining balance shall be forfeited to Transporter, free

and clear of any adverse claims.