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. 164 Second Revised Sheet No. 164 : Effective

Superseding: First Revised Sheet No. 164

GENERAL TERMS AND CONDITIONS

(Continued)

15. CAPACITY RELEASE PROGRAM (Continued)

15.12 Recalls and Reputs of Released Capacity. (Continued)

NAESB WGQ 5.3.53: "When capacity is recalled, it may not be reput for

the same gas day."

NAESB WGQ 5.3.54: "The deadline for notifying the Transportation

Service Provider of a reput is 8:00 a.m. to allow for timely nominations

to flow on the next gas day."

NAESB WGQ 5.3.7: "Transportation service providers should support the

function of reputting by releasing shippers."

15.13 Marketing Fee Agreement.

Transporter will be entitled to receive a marketing fee from the

Releasing Shipper in the event Transporter and the Releasing Shipper

agree that Transporter will actively market the Transportation rights

to be released. All of the terms and conditions pertaining to the

provision of such marketing services by Transporter will be set forth

in a written agreement executed by Transporter and the Releasing

Shipper.