Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-456-000, Status: Effective

Second Revised Sheet No. 181-B Second Revised Sheet No. 181-B : Effective

Superseding: First Revised Sheet No. 181-B

GENERAL TERMS AND CONDITIONS

(Continued)

22. POOLING (Continued)

22.7 Title Transfer Tracking.

(a) The following NAESB WGQ Definitions will apply:

NAESB WGQ 1.2.13: "'Title,' if not otherwise addressed in the

Transporter's contract or tariff, is the term used to identify the

ownership of gas."

NAESB WGQ 1.2.14: "Title Transfer is the change of title to gas

between parties at a location."

NAESB WGQ 1.2.15: "Title Transfer Tracking is the process of

accounting for the progression of title changes from party to

party that does not effect a physical transfer of the gas."

(b) Availability. Title Transfer Tracking is available as an optional

service in any of the supply area pools or market area pools

described in Section 22.1(b) to any party that executes an

agreement for such service.

(c) Third Party Account Administrator. Shipper may designate a third

party to provide title transfer tracking services.

(d) Capacity Rights/Priority of Service. Capacity rights and

priority of service from the Receipt Point to the Delivery Point

for all Gas on which title has been transferred are determined by

the Transportation Service Agreement used to transport the Gas

either from the supply area pool or to the market area pool.