Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 01/01/2004, Docket: RP04- 68-000, Status: Effective

Fourth Revised Sheet No. 145 Fourth Revised Sheet No. 145 : Effective

Superseding: Third Revised Sheet No. 145

GENERAL TERMS AND CONDITIONS

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.4 Transporter's Posting of Release Requests. (Continued)

(b) In the event the Release Request indicates that bids for the

Release will be accepted on a one-part volumetric basis for

the Release Reservation Rate or the Release Reservation

Surcharges, Transporter will determine the applicable

respective maximum one-part volumetric Release Reservation

Rate and Release Reservation Surcharges and will post this

information pursuant to Section 15.4(a). The applicable

maximum one-part volumetric Release Reservation Rate will be

the applicable Daily Reservation Rate set forth in

Transporter's Tariff, which is the 100% load factor

equivalent of the applicable maximum Tariff Reservation

Rate. The applicable maximum one-part volumetric Release

Reservation Surcharges will be the 100% load factor

equivalent of the applicable maximum Tariff Reservation

Surcharges.

warranty to any party concerning the willingness or ability

either of any Releasing Shipper to release Transportation

rights hereunder or of any Bidder to accept Transportation

rights hereunder.

(d) NAESB 5.3.25: "A releasing shipper should not be able to

specify an extension of the original bid period or the pre-

arranged deal match period, without posting a new release."

(e) NAESB 5.3.16: "The releasing party has the right to withdraw

its offer during the bid period, where unanticipated

circumstances justify and no minimum bid has been made."

NAESB 5.3.14: "Offers should be binding until written or

electronic notice of withdrawal is received by the capacity

release service provider." Transporter will post notice of

withdrawal on its Designated Site as soon as possible, but

in no event more than one Business Day, following receipt of

such notice.