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.16 Original Sheet No. 148U.16 : Effective

RATE SCHEDULE S-PALS

(b) Conversely, if the Shipper has not redelivered gas which

was loaned by Transporter by the end of its contract term

or within the timeframe specified in the notice in Sections

3 and 8.3 above, the Shipper must purchase the unreturned

balance at 150% of the highest Weekly Index Prices (WIPs)

of the "Spot Gas Prices Delivered to Pipelines" for CIG or

PEPL, as published in "Natural Gas Intelligence" during the

term of the loan. In the event that the information used

to determine the WIPs for the term of the loan is not

available, then the Shipper must purchase the unreturned

balance at 150% of the highest monthly index price of the

"Spot Gas Priced Delivered to Pipelines" for CIG or PEPL,

as published in "Natural Gas Intelligence" during the term

of the loan. The amounts collected in excess of 100% of

the highest Weekly or Monthly Index Price, as applicable,

are subject to refund in accordance with Section 35 of the

General Terms and Conditions of this Tariff. If

Operational Flow Orders are in effect on the date Shipper

is required to comply with the notice, Shipper shall be

subject to the highest charges set forth in Section 29.2 of

the General Terms and Conditions of this Tariff.

be implemented by Transporter on a non-discriminatory

basis.

8.5 In circumstances where Shipper is unable to eliminate its S-PALS

RO balance because Transporter is unable to accept the S-PALS RO

nomination, Shipper shall take any action to reduce the balance

which Transporter can accommodate and Shipper shall be granted

additional time to eliminate its S-PALS RO balance corresponding

to the time Transporter was unable to accept the S-PALS RO

nomination. Shipper shall not incur any penalty or daily fees as

to that portion of the balance resulting from Transporter's

inability to accept the S-PALS RO nomination. Such extension

shall only apply in instances where a Shipper's inability to

eliminate the S-PALS RO balance is attributable to Transporter's

inability to accept and confirm S-PALS RO nominations. Shipper

remains responsible to nominate the appropriate level of

transportation to meet Transporter's notification requirements.

9. GENERAL TERMS AND CONDITIONS

The applicable General Terms and Conditions of this Tariff are hereby

made a part of this Rate Schedule. To the extent that the General Terms

and Conditions are inconsistent with the provisions of this Rate

Schedule, the provisions of this Rate Schedule shall govern.