Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/30/2008, Docket: RP09-306-000, Status: Effective

Sixth Revised Sheet No. 144 Sixth Revised Sheet No. 144

Superseding: Fifth Revised Sheet No. 144

. GENERAL TERMS AND CONDITIONS .

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.3 Releases Permitted Without Prior Posting and Bidding. (Continued)

(b) Maximum Rate Long-Term Releases to Prearranged Bidder:

Prior posting and bidding pursuant to the procedures set

forth in this Section 15 will not be required for releases

of more than one year if the Releasing Shipper has provided

to Transporter the information required by Section 15.2(l)

regarding a Prearranged Bidder which has agreed to pay a

Total Release Reservation Charge which is equal to

Transporter's combined respective maximum Daily Reservation

Rate and any and all other maximum reservation charges and

surcharges applicable to the rate schedule governing the

Transportation rights to be released (the "Governing Rate

Schedule"), or the one-part volumetric equivalent thereof,

as may be revised from time to time (individually, the

"Tariff Reservation Rate" and the "Tariff Reservation

Surcharges," and collectively, the "Total Tariff Reservation

Charge"). In the event the Releasing Shipper elects to

release its Transportation rights under this Section 15.3(b)

without prior posting and bidding, then Transporter will

post the terms and conditions of any Release under this

Section 15.3(b) and the identity of the Prearranged Bidder

on its Designated Site no later than 9:00 a.m. CCT.

(c) Release to an Asset Manager: Prior posting and bidding

pursuant to the procedures set forth in this Section 15 will

not be required for any pre-arranged release to an asset

manager, defined as a release that contains the condition

that the Releasing Shipper may call upon the Replacement

Shipper to deliver to, or purchase from, the Releasing

Shipper a volume of gas up to 100 percent of the daily

contract demand of the released transportation according to

the following schedule:

(1) If the capacity release is for a period of one year or

less, the asset manager's delivery or purchase

obligation must apply on any day during a minimum

period of the lesser of five months (or 155 days) or

the term of the release.