TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 127 Original Sheet No. 127 : Superseded

RATE SCHEDULE PALS

6.5 TransColorado may from time to time and at any time, upon

twenty-four (24) hours verbal or written notice, subject to any

provisions on discounting in the PALS Agreement or PALS RO, charge any

individual Shipper for service under this Rate Schedule PALS a rate which

is lower than the applicable maximum rate set forth in this Tariff;

provided, however, that such rate charged may not be less than the

applicable minimum rate for service under Rate Schedule PALS set forth in

this Tariff. Unless otherwise agreed in the PALS Agreement or PALS RO,

TransColorado may at any time further change such rate (subject to any

restrictions as to maximum or minimum rates set out in this Tariff, the

PALS Agreement and/or PALS RO) upon twenty-four (24) hours' verbal notice

to Shipper, which notice shall be confirmed in writing. Such notification

shall specifically state the effective date of such rate change and the

quantity of gas so affected. TransColorado shall file with FERC any and

all reports as required by FERC's Regulations with respect to the

institution or discontinuance of any discount.

6.6 All revenues and gas in kind collected by TransColorado as a

result of providing service under this Rate Schedule PALS shall be

retained by TransColorado unless TransColorado has otherwise explicitly

agreed on a different disposition of such amounts. Where crediting or

refund mechanisms apply under other provision(s) of this Tariff or

pursuant to effective FERC orders or settlements, such mechanisms shall

supersede this Section to the extent necessary to carry out such

provision(s).