Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2003, Docket: RP03-374-000, Status: Effective

Third Revised Sheet No. 154 Third Revised Sheet No. 154 : Effective

Superseding: 1st Rev First Revised Sheet No. 154

GENERAL TERMS AND CONDITIONS

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.8 Applicable Deadlines.

(a) NAESB WGQ 5.3.1: "The Capacity Release timeline is

applicable to all parties involved in the Capacity Release

process; however, it is only applicable if 1) all

information provided by the parties to the transaction is

valid and the acquiring shipper has been determined to be

credit worthy before the capacity release bid is tendered

and (2) there are no special terms or conditions of the

release." Pursuant to NAESB WGQ Standard 5.3.2 the capacity

release timeline set forth below in Central Clock Time will

apply.

For biddable releases (less than 1 year):

(1) offers should be tendered by 12:00 p.m. on a

Business Day;

(2) open season ends no later than 1:00 p.m. on a

Business Day (evaluation period begins at 1:00 p.m.

during which contingency is eliminated,

determination of best bid is made, and ties are

broken);

(3) evaluation period ends and award posting if no match

required at 2:00 p.m.;

(4) match or award is communicated by 2:00 p.m.;

(5) match response by 2:30 p.m.;

(6) where match required, award posting by 3:00 p.m.;

(7) contract issued within one hour of award posting

(with a new contract number, when applicable);

nomination possible beginning at the next available

nomination cycle for the effective date of the

contract. (Central Clock Time)