TransColorado Gas Transmission Company

Original Volume No. 1

Effective Date: 11/01/2001, Docket: RP02- 5-000, Status: Effective

Original Sheet No. 116 Original Sheet No. 116 : Superseded

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.