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. 120 Original Sheet No. 120 : Effective

RATE SCHEDULE PALS

4.2 In addition to the information provided in the PALS Agreement,

Shipper also shall provide the following information to TransColorado with its

initial request for service:

(a) The Park and Loan Service provided for under this Rate

Schedule PALS shall be performed under Part 284 of FERC's Regulations.

Shipper shall only tender gas under this Rate Schedule PALS to the extent

service hereunder would qualify under the applicable statutes, regulations,

FERC orders and the blanket certificate authorizing service by TransColorado

under this Rate Schedule PALS. For service under Subpart B of Part 284,

Shipper shall provide to TransColorado with its initial request for service

appropriate certification, including sufficient information in order for

TransColorado to verify that the service qualifies under Subpart B of Part 284

of the Regulations. Where required by FERC's Regulations, Shipper shall cause

the intrastate pipeline or local distribution company on whose behalf the

service will be provided to submit any necessary certification. Shipper shall

provide the actual end user purchaser name(s) to TransColorado if

TransColorado must provide them to the FERC.

(b) Shipper will warrant for itself, its successors and

assignees, that it will at the time of delivery to TransColorado have title to

all gas free and clear of all liens, encumbrances, and claims whatsoever.

Shipper will indemnify TransColorado and hold it harmless from all suits,

actions, debts, accounts, damages, costs, losses, and expenses arising from or

out of adverse claims of any or all persons or parties to said gas, including

claims for royalties, taxes, license fees or charges applicable to such gas or

to the delivery thereof to TransColorado under this Rate Schedule; and

(c) Shipper has entered into all necessary arrangements to

assure that upstream and downstream transportation, if any, will be in place

prior to the commencement of service on TransColorado's pipeline.