Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Second Revised Sheet No. 163 Second Revised Sheet No. 163 : Effective

Superseding: Sub First Revised Sheet No. 163

. .

GENERAL TERMS AND CONDITIONS

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.11 Further Conditions on Release of Transportation Rights.

(Continued)

(h) All Transportation rights released hereunder will be

scheduled and curtailed as firm Transportation service under

Section 13 of these General Terms and Conditions.

Interruption or curtailment of such released service will be

in accordance with interruption or curtailment of firm

service under this Tariff, and additionally as may be

prescribed by the terms and conditions of the release.

(i) Notwithstanding any other provision set forth in this

Section 15, Transporter will have no liability of any nature

whatsoever to any party in connection with the performance

or nonperformance of any of Transporter's obligations set

forth in this Section 15, except to the extent that any such

liabilities arise solely from Transporter's negligent

performance of any obligations for which Transporter is

solely and directly responsible.

15.12 Recalls and Reputs of Released Capacity. Releasing Shippers may,

to the extent permitted as a condition of the capacity release,

recall released capacity. For the recall notification provided to

Transporter, the quantity should be expressed in terms of adjusted

total released capacity entitlements based upon the Elapsed

Prorata Capacity. The following NAESB WGQ Standards will apply:

NAESB WGQ 5.3.44: "All Transportation Service Providers (TSPs)

should support the following recall notification periods for all

released capacity subject to recall rights: