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. 118 Original Sheet No. 118 : Effective

RATE SCHEDULE PALS

4. VALID REQUESTS FOR PALS AGREEMENT(S) AND FOR PALS RO(S)

4.1 A request for service under this Rate Schedule PALS shall be valid

as of the date received if it complies with this Section 4 and contains

adequate information on all of the items specified in Sections 4.3(a) and

4.3(b), subject to any necessary verification of such information and to the

following:

(a) A request shall not be valid and TransColorado shall not be

required to grant any such request: (1) which could in TransColorado's

judgment interfere with efficient operation of its system or with service to

any firm Shipper; (2) which would require the construction, modification,

expansion, or acquisition of any facilities to enable it to perform such

services; provided, however, that TransColorado may agree in its reasonable

discretion to construct, modify, expand, or acquire any facilities; (3) unless

and until Shipper has provided TransColorado with the information required in

Section 4.2 hereof and the assurances required under Section 1.3 hereof; (4) if

TransColorado determines, based on the credit analysis referenced in Section

4.2(d), that Shipper does not possess sufficient financial stability to make it

reasonably likely the service provided hereunder will be paid for on a timely

basis; (5) if the service requested would not comply with this Rate Schedule

PALS; or (6) if the service requested is at less than the applicable maximum

rate; provided, however, that TransColorado may agree to provide service

hereunder at a discount consistent with this Rate Schedule PALS. Nothing

herein is intended to govern the scheduling and curtailment of service once a

request for service has been granted pursuant to Section 4 hereof and while

Agreements under this Rate Schedule are in effect. Such matters are governed

by Section 3 of this Rate Schedule and the applicable General Terms and

Conditions of this Tariff.

(b) TransColorado may agree, however, to construct, modify,

expand or acquire facilities to perform service under this Rate Schedule PALS

on a non-discriminatory basis whenever such is deemed, in TransColorado's

reasonable judgment, to be economically, operationally and technically

feasible, subject to the following conditions:

(1) TransColorado has received an executed revised service

agreement from existing and prospective Shipper(s) requesting such additional

facilities or expansion of capacity;

(2) TransColorado does not have physical facilities or

adequate capacity in the system to accommodate requests for service of

existing and prospective Shippers accepted by TransColorado pursuant to

Section 4.1 hereof;