TransColorado Gas Transmission Company

Original Volume No. 1

Effective Date: 11/01/2001, Docket: RP02- 5-001, Status: Effective

Substitute Original Sheet No. 124 Substitute Original Sheet No. 124 : Superseded

RATE SCHEDULE PALS

5. TERM

5.1 The term of service hereunder shall be set forth in the PALS

Agreement between Shipper and TransColorado. The PALS RO shall have a

separately stated term or terms applicable to a particular transaction,

which term may not extend beyond the term of the related PALS Agreement.

Upon termination of any PALS Agreement and of any PALS RO, service by

TransColorado to Shipper thereunder shall be terminated and

automatically abandoned.

5.2 TransColorado may terminate any PALS Agreement if TransColorado

is required by the FERC or some other agency or court to provide service

for others utilizing the interruptible system capacity or capabilities

required for service under such PALS Agreement, or if TransColorado

ceases (after receipt of any requisite regulatory authorization) to

offer service of the type covered by the PALS Agreement. Settlement of

such terminated agreement shall be pursuant to Section 8.4.

6. RATE

6.1 (a) For the Park and Loan Service rendered to Shipper under

this Rate Schedule PALS, Shipper shall pay TransColorado each month the

sum of the following charges:

(i) An Initial Rate for each unit of gas tendered for

park or taken for loan during that month;

(ii) A Park/Loan Balance Rate for each unit of gas which

is parked or loaned under this Rate Schedule PALS for that month (such

charge shall be calculated on the basis of the daily ending balance for

each PALS RO for each day of the month); and

(iii) A Completion Rate for each unit of gas returned to

TransColorado on completion (payback) of a loan or received by Shipper

on completion (reversal) of a park that month.

The maximum and minimum rate(s) applicable to this Rate Schedule

PALS are set forth in the Currently Effective Rates section of this

Tariff, Original Volume No. 1. On any day, the sum of the Initial Rate,

the Park/Loan Balance Rate and the Completion Rate assessed for any park

or loan may not exceed the maximum PALS Initial Rate on a per unit

basis.