Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Original Sheet No. 150-A Original Sheet No. 150-A : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.6 Determination of Successful Bidder. (Continued)

(4) Other Methodology: the shipper-defined,

nondiscriminatory evaluation methodology agreed to by

Transporter, which may include (but is not limited to)

a payment by Releasing Shipper to Replacement Shipper

as consideration for accepting a release.