Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 11/01/2004, Docket: RP04-619-000, Status: Effective

Original Sheet No. 142-A Original Sheet No. 142-A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.2 Releasing Shipper's Release Request. (Continued)

(n) any other terms and conditions of the Release, including

whether Releasing Shipper will require Replacement Shipper

to execute a contract with the Releasing Shipper with

respect to the Release, a copy of which will be provided by

Releasing Shipper to any Bidder upon request. In the event

of a conflict, the terms and conditions of Transporter's

Tariff, the Base Transportation Service Agreement, and the

Released Transportation Service Agreement will take

precedence over the terms and conditions contained in any

such contract between the Releasing Shipper and the

Replacement Shipper.

15.3 Releases Permitted Without Prior Posting and Bidding.

A Releasing Shipper may, at its option, elect to release some or

all of its Transportation rights without following the prior

posting and bidding procedures set forth in this Section 15, if

its proposed Release qualifies under this Section 15.3.