Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 02/01/2006, Docket: RP06-160-000, Status: Effective

Third Revised Sheet No. 205 Third Revised Sheet No. 205 : Effective

Superseding: Sub Second Revised Sheet No. 205

GENERAL TERMS AND CONDITIONS

(Continued)

27. AVAILABLE CAPACITY

27.1 Applicability. In accordance with 18 CFR, Sec. 284.13(d),

Transporter will post on its internet web site generally available

unsubscribed capacity and capacity that becomes available due to

expiring or terminating agreements on a nondiscriminatory basis.

If a specific block of capacity comprised of a primary receipt

point, a primary delivery point and the mainline capacity between

those points is available, Transporter will post that block of

capacity for competitive bid in accordance with Section 27.2

below, and that capacity will be unavailable for amendment except

as provided in Section 27.4(h).

27.2 Posting

(a) Unsubscribed Capacity. Transporter will post unsubscribed

capacity (capacity that is available for reasons other than

expiring or terminating agreements) for a bid period of no

less than seventy-two (72) hours and no more than six (6)

months for capacity that is available for a term of one year

or longer. For capacity that is available for a term of

less than one year, Transporter will post such capacity for

a bid period of no less than twenty-four (24) hours and no

more than one (1) month.

If no bids are received that meet Transporter's minimum

acceptable price and term as provided in Sections 27.2(f)

and (g), and Transporter has executed a Letter of Intent

with a prospective shipper or announced its intent to hold

an open season for an expansion project, Transporter may

elect to reserve all or a portion of the unsubscribed

capacity for future expansion projects as provided in

Section 27.2(d) below.

If service will not commence within 30 days following the

date that capacity is awarded, or if Transporter elects to

reserve the capacity for a future expansion project,

Transporter will repost such capacity as provided in this

Section for use on an interim basis, but Transporter will

indicate in its posting that such capacity is reserved for

future use.

(b) Capacity under Expiring or Terminating Agreements.

Transporter will post capacity under expiring or terminating

Transportation Service Agreements (including capacity that

becomes available at the expiration of a Capacity Release

Transportation Service Agreement when such capacity is not

committed to the Releasing Shipper) with a term of one year

or longer for a bid period of no less than seventy-two (72)

hours and no more than six (6) months. For Transportation

Service Agreements with a term of less than one year,

Transporter will post such capacity for a bid period of no

less than twenty-four (24) hours and no more than one (1)

month.