Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-167-000, Status: Effective

Original Sheet No. 116 Original Sheet No. 116 : Effective

RATE SCHEDULE PALS

2.2 Under this Rate Schedule PALS, TransColorado shall only park gas

or loan gas to the extent TransColorado determines that such actions are not

detrimental to its ability to satisfy any of its existing obligations with

higher priority service or to meet system operational needs. TransColorado

may, based on its reasonable determination of its operational capability and

in a non-discriminatory manner, interrupt or decline to schedule any or all of

the services hereunder and, if such actions are required to avoid interference

with firm service or to protect the integrity of the system, will do so prior

to applying Section 20, System Operation, of the General Terms and Conditions

of this Tariff and subject to Section 8 hereof.

2.3 All mutually agreeable points of receipt and delivery on

TransColorado's system are available on a non-discriminatory basis for service

under this Rate Schedule PALS. Unless an alternative point is agreed upon by

TransColorado and the Shipper, the same point must be utilized to initiate and

to complete a specific park and loan transaction. The specific point(s) for a

park or loan shall be set forth in the applicable PALS RO.

2.4 Subject to the provisions of Section 2.2 above, Park and Loan

Services available under this Rate Schedule PALS include:

(a) Park Service: shall consist of TransColorado's receipt

of a quantity of natural gas at the designated Receipt Point(s) on the

designated date(s), requested by Shipper under a PALS RO and approved by

TransColorado; TransColorado's holding of such parked quantity of gas for

Shipper's account and TransColorado's redelivery of the parked quantity of

gas to Shipper at the designated Delivery Point(s) and on the designated

date(s) set forth in such PALS RO.

(b) Loan Service: shall consist of TransColorado lending a

specified quantity of natural gas, requested by Shipper and approved by

TransColorado, from designated Delivery Point(s) set forth in Shipper's

PALS RO, and the Shipper's redelivery of and TransColorado's acceptance of

such volumes for Shipper's account at the designated Receipt Point(s) on

the designated date(s) set forth in such PALS RO.

2.5 TransColorado will post on its Interactive Web Site the

availability of PALS from time to time.