Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 12/19/2009, Docket: RP10-160-002, Status: Effective

Sub Fourth Revised Sheet No. 107 Sub Fourth Revised Sheet No. 107

Superseding: Fourth Revised Sheet No. 107

. .

GENERAL TERMS AND CONDITIONS

(Continued)

11. SERVICE AGREEMENT AND SERVICE CONDITIONS

11.1 Form of Agreement. Shippers desiring service pursuant to

Transporter's Rate Schedules shall execute a Transportation

Service Agreement in the form contained in this Tariff. The

executed Transportation Service Agreement, together with the

General Terms and Conditions and applicable Rate Schedules, shall

constitute the entire agreement between the parties for Gas

transportation service provided therein and shall only be modified

in writing.

11.2 Term of Agreement.

(a) The term of the executed Transportation Service Agreement

shall be determined by agreement between Transporter and

Shipper. Such term may include contingencies, such as

completion of construction or board or governmental

approval, and extension rights, such as a rollover,

evergreen or right-of-first-refusal provision and, if

applicable, a related termination provision.

(b) A Shipper eligible for a right of first refusal as set forth

in Section 27.5(a) of the General Terms and Conditions may

continue receiving service at the end of the term of any

agreement, including any term extended pursuant to any

contractual rollover or evergreen provision, as provided in

Sections 27.5(a),(b), and (d).

11.3 Receipt and Delivery Point Entitlements. For shippers requesting

new firm transportation service, the Receipt Point and Delivery

Point entitlements specified on Exhibit "A" to the transportation

service agreement must be equal to Shipper's Transportation

Maximum Daily Quantity. For shippers that amend existing firm

transportation service agreements, each ratio of Receipt Point and

Delivery Point entitlement to total Transportation Maximum Daily

Quantity or Maximum Daily Quantity (as applicable) must be

retained, except in the case of a capacity release where Shipper

must comply with Section 15.2(d) of the General Terms and

Conditions.