Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 09/06/2004, Docket: RP04-444-000, Status: Effective

Second Revised Sheet No. 162 Second Revised Sheet No. 162 : Effective

Superseding: Sub First Revised Sheet No. 162

. GENERAL TERMS AND CONDITIONS .

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.11 Further Conditions on Release of Transportation Rights.

(Continued)

(e) All terms and conditions of service provided under any

Release must be consistent with and will be subject to all

terms and conditions of the Releasing Shipper's Service

Agreement, and with all applicable terms and conditions of

this Tariff, including without limitation the provisions on

nominations, scheduling and curtailment of Transportation

service as set forth in Section 13 of the General Terms and

Conditions of this Tariff. Any subsequent Release hereunder

by a Replacement Shipper additionally must be consistent

with the terms and conditions of such Replacement Shipper's

Released Transportation Service Agreement and any and all

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

(f) Transporter will reject any Release Request or any bid which

does not conform in all respects to the requirements of this

Section 15, and such rejected Release Request or bid will be

deemed null and void from the time of such rejection.

(g) Transporter will accept nominations, schedule

Transportation, afford priority of service and curtail

service based on instructions and communications from the

Releasing Shipper and the Replacement Shipper which are

consistent with one another and with the terms and

conditions of their respective Transportation Service

Agreements and this Tariff. In the event such instructions

or communications from the Releasing Shipper and Replacement

Shipper in Transporter's sole opinion are inconsistent or

conflicting, Transporter will comply with the instructions

and communications of the Releasing Shipper; provided,

however, that such instructions and communications must not

be inconsistent with this Tariff, in Transporter's sole

opinion.