Kern River Gas Transmission Company

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 07/30/2008, Docket: RP09-306-001, Status: Effective

Substitute Fifth Revised Sheet No. 161 Substitute Fifth Revised Sheet No. 161

Superseding: Fourth Revised Sheet No. 161

. .

GENERAL TERMS AND CONDITIONS

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.11 Further Conditions on Release of Transportation Rights. (Cont.)

(b) All terms and conditions in all Release Requests must be

objectively stated, applicable to all potential Bidders and

nondiscriminatory.

(c) The minimum term for any Release will be one Day and the

maximum term will be the remaining term of the relevant

Transportation Service Agreement, or the remaining term of

firm Transportation service provided under the relevant

Released Transportation Service Agreement as determined in

accordance with the Release Term of all effective Exhibits

"RS" and Exhibits "RP" thereto, as may be revised from time

to time. The minimum DMDQ for any Release will be 500 Dth

per Day and the maximum DMDQ will be the maximum DMDQ set

forth in the Releasing Shipper's Service Agreement, as

revised from time to time in accordance with any and all

effective Exhibits "RS" and Exhibits "RP" thereto.

(d) Any Release of one year or less that is to take effect on or

before one year from the date Transporter is notified of the

Release shall not be subject to a rate ceiling. Such

Release shall be subject to market-based bidding unless

exempt from bidding under Section 15.3(a), (c) or (d). The

maximum rates paid by the Replacement Shipper for service

under any other Release will be the applicable maximum

Tariff Reservation Rate and Tariff Reservation Surcharges,

and applicable maximum Tariff Usage Rate and Tariff

Volumetric Surcharges, as well as all other applicable

maximum rates, charges and surcharges set forth in this

Tariff, all as may be revised from time to time,

notwithstanding any discount to such rates, charges or

surcharges then in effect for the Releasing Shipper. The

Release Reservation Rate and Release Reservation Surcharges

will for all purposes of this Section 15 be stated in

relation to and on the same basis as the Daily

Reservation/Demand Rate set forth in this Tariff for service

under the Governing Rate Schedule, subject to the additional

provisions of Section 15.4(b) concerning any Release

Reservation Rate or Release Reservation Surcharges which may

be paid on a one-part volumetric basis. The maximum rate

that may be charged for a Release will not be affected by

the amount of any marketing fee paid by the Releasing

Shipper to Transporter in accordance with Section 15.12.