Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 10/01/2003, Docket: RP00-337-006, Status: Effective

Original Sheet No. 69-C Original Sheet No. 69-C : Effective

RATE SCHEDULE PAL

PARK AND LOAN SERVICES

(Continued)

2. APPLICABILITY (Continued)

2.4 Transporter will establish and maintain a parking account and/or a

loan account (as applicable) for each Shipper that executes a PAL

Service Agreement.

2.5 Transportation of Gas for or on behalf of Shipper to or from the

PAL Point must be provided under a Transportation Service

Agreement. Receipt and/or delivery of Gas for Shipper's account

at the PAL Point will be scheduled only for Quantities that are

matched by scheduled Quantities for the related transportation

services to or from the PAL Point.

2.6 Park Service.

(a) Transporter may agree to receive and park Gas tendered for

Shipper's account at the PAL Point, up to the Maximum Park

Quantity specified in the PAL Service Agreement.

(b) Shipper and Transporter will mutually agree to a withdrawal

schedule. Shipper may subsequently adjust its schedule with

the consent of Transporter.

(c) Shipper will withdraw parked Gas from the PAL Point by

nominating a Quantity, up to the total Quantity of Gas

available in Shipper's parked Gas account at the PAL Point,

for redelivery under a Transportation Service Agreement.

(d) If Transporter is unable to schedule nominated Quantities of

Gas for withdrawal from Shipper's parked Gas account in

accordance with the planned withdrawal schedule, Transporter

and Shipper will mutually agree to a revised withdrawal

schedule for the nominated Quantities.

2.7 Loan Service.

(a) Transporter may agree to loan Gas to Shipper from the PAL

Point, up to the Maximum Loan Quantity specified in the

executed PAL Service Agreement.

(b) Shipper and Transporter will mutually agree to a repayment

schedule. Shipper may subsequently adjust its schedule with

the consent of Transporter.