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

Third Revised Sheet No. 156 Third Revised Sheet No. 156 : Effective

Superseding: Second Revised Sheet No. 156

GENERAL TERMS AND CONDITIONS

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.9 Submission of Release Requests and Bids. (Continued)

(c) Any Releasing Shipper, Replacement Shipper, or Bidder which

transmits to Transporter on Transporter's Designated Site

any information, Release Request, or bid permitted or

required by this Section 15, expressly represents and

warrants that such transmittal will be performed only by a

person who has been duly authorized by the Releasing

Shipper, the Replacement Shipper, or the Bidder, as

applicable, to perform such transmittal, and to duly bind

the Releasing Shipper, the Replacement Shipper, or the

Bidder, as applicable, to any and all obligations which may

result from such transmittal pursuant to the provisions of

this Section 15.

15.10 Invoicing and Payment.

(a) A Releasing Shipper who has executed an effective Base

Transportation Service Agreement with Transporter ("Base

Shipper") will remain responsible for payment to Transporter

of the reservation rate and any and all other applicable

reservation charges and surcharges for firm Transportation

service provided under its Base Transportation Service

Agreement prior to any Release thereunder; provided,

however, that Transporter will not unreasonably refuse to

relieve such Base Shipper from any future liability under

its Base Transportation Service Agreement which may arise

after the Base Shipper has unconditionally released to a

Replacement Shipper all of the DMDQ stated in the Base

Transportation Service Agreement, and Replacement Shipper

has agreed to pay Transporter a total rate (including

surcharges) that is equal to or higher than the total rate

that the Releasing Shipper is obligated to pay Transporter,

for the entire remaining term of the Base Transportation

Service Agreement. (Any payments made by Releasing Shipper