Transcolorado Gas Transmission Company LLC

Second Revised Volume No. 1

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

Original Sheet No. 128 Original Sheet No. 128 : Effective

RATE SCHEDULE PALS

7. QUANTITY

Each PALS RO shall specify in Dth the MAQ RO and a daily schedule of

the quantities (including the MDQ RO) to be parked and/or loaned under the

specific transaction. The daily schedule of returned volumes by the Shipper

or TransColorado shall also be specified in the PALS RO. The quantities may

be specified as a range of volumes (maximum and minimum aggregate and daily

quantities and the related time periods) to be parked and/or loaned and

returned, and the schedule may include the flexibility to do either a park or

a loan within specified volume and time limits. The schedule may provide for

flexibility in total volumes and in the daily volumes parked and/or loaned,

in the timing of the park or the loan (or any portion thereof), in the

duration of the park and/or loan (or portion thereof), and/or in the timing

of the completion of the park or loan (or portion thereof) by the return of

gas to the Shipper or to TransColorado, and shall specify the limits of the

flexibility allowed. Subject to the flexibility specified in the PALS RO,

the MDQ RO shall be the maximum quantity TransColorado is obligated, on an

interruptible basis, to receive from or deliver to Shipper hereunder on the

specified day. The MAQ RO shall be the maximum aggregate quantity

TransColorado is obligated to hold or loan for the account of Shipper

hereunder on an interruptible basis for the specific transaction covered by

the PALS RO. The minimum aggregate and daily volumes to be parked and/or

loaned and returned on an interruptible basis shall also be specified in the

PALS RO schedule. The sum total of a Shipper's MAQ ROs and MDQ ROs shall not

exceed the MAQ and MDQ specified in the PALS Agreement. If a Shipper exceeds

the timing parameter in the applicable PALS RO (unless such failure is due to

TransColorado not confirming a nomination properly submitted), it shall be

subject to overrun charges consistent with Section 6.2 of this Rate Schedule.

8. MANDATORY BALANCING

8.1 Mandatory Balancing shall apply in the following instances: (a)

at the end of the term specified in any applicable PALS Agreement or PALS RO;

(b) where the Shipper fails to comply either with the requirements of

TransColorado's notice referenced in Sections 3 and 8.3(b) hereof; or (c)

where Shipper fails to comply with the schedule of activities set forth in

the applicable PALS RO and the deviation has not been agreed to and confirmed

by TransColorado.

8.2 TransColorado shall require mandatory balancing effective the

next day prior to taking action under Section 20 to the General Terms and

Conditions of this Tariff, if TransColorado reasonably determines that doing

so would facilitate system operations and minimize the severity of action

under Section 20.