Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 117 Original Sheet No. 117 : Effective

RATE SCHEDULE PALS

3. NOMINATIONS AND SCHEDULING

3.1 It shall be Shipper's sole responsibility to provide TransColorado

with daily nominations of the quantity of gas to be received or delivered at

the Receipt or Delivery point(s) under the applicable PALS RO. Nominations

for any day or for any nomination cycle must be consistent with the PALS RO.

It shall also be Shipper's responsibility to cause gas to be delivered to

TransColorado and to cause gas to be received from TransColorado in accordance

with the PALS RO. Nominations shall be subject to confirmation and scheduling

in accordance with the General Terms and Conditions of this Tariff. If a

nomination for payback on a loan, or withdrawal on a park is consistent with

the PALS RO but cannot be confirmed by TransColorado, the Shipper must

continue to nominate on subsequent days until TransColorado can confirm the

nomination, unless the parties agree on a revised PALS RO. Service under Rate

Schedule PALS is provided on an interruptible basis.

3.2 Priorities of service for the purposes of scheduling and

curtailment shall be governed by Sections 8.1 and 8.3, respectively, of the

General Terms and Conditions of this Tariff.

3.3 In the event it is necessary to decline to schedule or to

interrupt, curtail or suspend service under PALS because of operational

conditions or to satisfy obligations with a higher priority, TransColorado

shall provide actual notice to Shipper. In that event, Shipper must comply

with the directive(s) contained in TransColorado's notification within the

time specified.

3.4 If Shipper fails to comply with the requirements set out in a

notification under Section 3.3 above, then Section 8 of this Rate Schedule

PALS shall apply.