Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2009, Docket: RP09-616-000, Status: Effective

Third Revised Sheet No. 201 Third Revised Sheet No. 201

Superseding: Second Revised Sheet No. 201

GENERAL TERMS AND CONDITIONS

(Continued)

26. SEGMENTATION (Continued)

26.2 Segmentation with Capacity Release.

A Shipper may segment its mainline capacity at any point on

Transporter's mainline, up to its DMDQ in any segment, and

temporarily release that capacity to a replacement Shipper.

(a) For each segment that is released, the releasing Shipper

will identify the primary Receipt Point and/or primary

Delivery Point entitlements that it will retain and the

primary Receipt Point and/or primary Delivery Point

Entitlements that it will release (if any); provided,

however, that a releasing Shipper may not retain

entitlements at a primary Receipt Point or a primary

Delivery Point if such point cannot be accessed by the

primary mainline rights that it retains.

(b) For each segment that is acquired, the replacement Shipper

has the option, but not the requirement, to obtain primary

Receipt Point and primary Delivery Point entitlements up to

its current TMDQ. Such replacement Shipper may utilize the

primary Receipt Point and/or primary Delivery Point

entitlements that are being relinquished by the releasing

Shipper (if applicable) or may select other primary Receipt

Points and/or primary Delivery Points; provided, however,

that the replacement Shipper must select primary Receipt

Points and primary Delivery Points where capacity is

available, and Shipper must have firm mainline rights to

access those points that are selected.

secondary Receipt and/or Delivery Points anywhere on

Transporter's mainline; provided, however that the combined

total of releasing Shipper's and replacement Shipper's

nominations for any portion of Transporter's mainline cannot

exceed releasing Shipper's pre-release TMDQ.