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Original Sheet No. 120 Original Sheet No. 120 : Superseded

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.