Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 04/20/2009, Docket: RP09-466-000, Status: Effective

First Revised Sheet No. 146 First Revised Sheet No. 146

Superseding: Original Sheet No. 146

. GENERAL TERMS AND CONDITIONS .

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.5 Bidding for Transportation Rights.

(a) Any party that desires to become a Prearranged Bidder or

Bidder, or to otherwise acquire a Release pursuant to this

Section 15, must pre-qualify with Transporter by entering

into a Released Transportation Service Agreement with

Transporter, after first satisfactorily demonstrating

sufficient creditworthiness in the same manner and subject

to the same terms and conditions as required for firm

Shippers under Section 29 of the General Terms and

Conditions of this tariff.

The creditworthiness requirement will be continuing in

nature with respect to the Release in the same manner and to

the same extent as prescribed for firm Shippers under

Section 29 of the General Terms and Conditions of this

tariff, and will apply with respect to any and all Releases

desired by a potential Replacement Shipper. No potential

Replacement Shipper will be entitled to receive any released

firm Transportation service rights pursuant to this Section

15 for which it has not first satisfactorily demonstrated

sufficient creditworthiness with Transporter. Any

satisfactory guarantee provided by the Releasing Shipper or

by any third party on behalf of a potential Replacement

Shipper in accordance with this Section 15 and Section 29 of

the General Terms and Conditions of this tariff must

provide, without limitation, that the Guarantor will

guarantee all financial obligations of the Replacement

Shipper under its Released Transportation Service Agreement

with respect to the Release.

(b) Bidders may submit bids only during the Bidding Period

applicable to a Release Request. A Bidder may not

simultaneously submit multiple bids for the same Release.

All bids will be submitted via Transporter's Designated Site

on the Internet, and will comply with and otherwise be

subject to all terms and conditions set forth in the Release

Request. All bids will contain the following information

for each Release Request: