TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 126 Original Sheet No. 126 : Superseded

RATE SCHEDULE PALS

6.3 (a) Shipper shall reimburse TransColorado within five (5)

days after costs have been incurred by TransColorado for all fees

required by the FERC or any regulatory body including, but not limited

to, filing, reporting, and application fees to the extent such fees are

specifically related to service for that Shipper hereunder and are not

generally applicable fees (such as general rate case filing fees).

(b) If TransColorado constructs, acquires or modifies any

facilities to perform service hereunder, then, as specified in an

agreement related thereto between the parties, either:

(i) Shipper shall reimburse TransColorado for the cost

of such facilities or facility modifications as described in Section

3.1(c) of the Interruptible Transportation service Rate Schedule of this

Tariff; or

(ii) TransColorado shall assess a monthly charge

reflecting such facility costs.

6.4 (a) TransColorado shall have the unilateral right to file

with any appropriate regulatory authority and make changes effective in:

(1) the rates and charges applicable under this Rate Schedule PALS,

including both the level and design of such rates and charges; and/or

(2) the terms and conditions of this Rate Schedule PALS. TransColorado

agrees that Shipper may protest or contest the aforementioned filings,

or may seek authorization from duly constituted regulatory authorities

for such adjustment of TransColorado's existing FERC Gas Tariff as may

be found necessary to assure that its provisions are just and

reasonable.

(b) If, at any time and from time to time, the FERC or any

other governmental authority having jurisdiction in the premises allows

or permits TransColorado to collect, or to negotiate to collect, a

higher rate for the service hereunder, the rate shall, subject to any

contrary provision of the PALS Agreement or PALS RO, be increased to the

highest such rate. Should additional documentation be required in order

for TransColorado to collect such highest rate, Shipper shall execute or

provide such documentation within fifteen (15) days after a written

request by TransColorado. If, at any time and from time to time, the

FERC or any other governmental authority having jurisdiction in the

premises requires TransColorado to charge a lower rate for service

hereunder, the rate shall be decreased to such reduced rate.