Kinder Morgan Interstate Gas Transmission LLC

Fourth Revised Volume No. 1-A

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Effective Date: 07/01/2001, Docket: RP01-438-000, Status: Effective

Original Sheet No. 148J Original Sheet No. 148J : Effective






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

Agreement between Shipper and Transporter. 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; provided, however, that both the PALS Agreement and related

PALS RO(s) shall include a buyout provision, permitting early

termination by Shipper or Transporter subject to a mutually agreed upon

exit fee. Upon termination of any PALS Agreement and of any PALS RO,

service by Transporter to Shipper thereunder shall be terminated and

automatically abandoned.


5.2 Transporter may terminate any PALS Agreement if Transporter 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 Transporter

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.





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

Rate Schedule PALS, Shipper shall pay Transporter 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

Transporter 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, Fourth Revised Volume No. 1-A. 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.