TransColorado Gas Transmission Company

Original Volume No. 1

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

Original Sheet No. 128 Original Sheet No. 128 : Superseded

RATE SCHEDULE PALS

7. QUANTITY

Each PALS RO shall specify in Dth the MAQ RO and a daily schedule

of the quantities (including the MDQ RO) to be parked and/or loaned

under the specific transaction. The daily schedule of returned volumes

by the Shipper or TransColorado shall also be specified in the PALS RO.

The quantities may be specified as a range of volumes (maximum and

minimum aggregate and daily quantities and the related time periods) to

be parked and/or loaned and returned, and the schedule may include the

flexibility to do either a park or a loan within specified volume and

time limits. The schedule may provide for flexibility in total volumes

and in the daily volumes parked and/or loaned, in the timing of the park

or the loan (or any portion thereof), in the duration of the park and/or

loan (or portion thereof), and/or in the timing of the completion of the

park or loan (or portion thereof) by the return of gas to the Shipper or

to TransColorado, and shall specify the limits of the flexibility

allowed. Subject to the flexibility specified in the PALS RO, the MDQ

RO shall be the maximum quantity TransColorado is obligated, on an

interruptible basis, to receive from or deliver to Shipper hereunder on

the specified day. The MAQ RO shall be the maximum aggregate quantity

TransColorado is obligated to hold or loan for the account of Shipper

hereunder on an interruptible basis for the specific transaction covered

by the PALS RO. The minimum aggregate and daily volumes to be parked

and/or loaned and returned on an interruptible basis shall also be

specified in the PALS RO schedule. The sum total of a Shipper's MAQ ROs

and MDQ ROs shall not exceed the MAQ and MDQ specified in the PALS

Agreement. If a Shipper exceeds the timing parameter in the applicable

PALS RO (unless such failure is due to TransColorado not confirming a

nomination properly submitted), it shall be subject to overrun charges

consistent with Section 6.2 of this Rate Schedule.

8. MANDATORY BALANCING

8.1 Mandatory Balancing shall apply in the following instances:

(a) at the end of the term specified in any applicable PALS Agreement or

PALS RO; (b) where the Shipper fails to comply either with the

requirements of TransColorado's notice referenced in Sections 3 and

8.3(b) hereof; or (c) where Shipper fails to comply with the schedule of

activities set forth in the applicable PALS RO and the deviation has not

been agreed to and confirmed by TransColorado.

8.2 TransColorado shall require mandatory balancing effective the

next day prior to taking action under Section 20 to the General Terms

and Conditions of this Tariff, if TransColorado reasonably determines

that doing so would facilitate system operations and minimize the

severity of action under Section 20.