TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 117 Original Sheet No. 117 : Superseded

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.