Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 06/01/2002, Docket: RP02-248-001, Status: Effective

Sub Original Sheet No. 207 Sub Original Sheet No. 207 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

27. AVAILABLE CAPACITY (Continued)

27.2 Posting. (Continued)

expansion project is placed into service. Reserved capacity

will be made available on an interim basis. If certificate

approval is not granted or if Transporter determines that an

expansion project should not or cannot be completed,

Transporter will post such previously reserved capacity on

its Designated Site.

(e) Available Capacity. All available capacity will be posted

to Transporter's Designated Site on the Internet.

Each posting will set forth the following, if applicable:

1. Receipt point(s), delivery point(s) and associated

mainline capacity;

2. Date capacity is available;

3. Date capacity is committed to an expansion project, if

applicable;

4. Bid open and close dates;

5. Term and reservation rate to be paid by pre-arranged

Shipper, if applicable;

6. Whether or not Transporter will accept negotiated rate

bids in addition to recourse rate and discounted

recourse rate bids;

7. Special conditions, including bid evaluation criteria.

(f) Transporter has the option to establish a minimum acceptable

rate for any available capacity before such capacity is

posted. Transporter is not required to disclose the minimum

rate at the time of posting, but a record of such rate must

be maintained for a period of three years for audit

purposes.