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

First Revised Sheet No. 207-A First Revised Sheet No. 207-A : Effective

Superseding: Sub Original Sheet No. 207-A

GENERAL TERMS AND CONDITIONS

(Continued)

27. AVAILABLE CAPACITY (Continued)

27.2 Posting. (Continued)

(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 or

to a firm transportation service agreement, 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) Minimum Rate. 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.

(g) Minimum Term. For available capacity that Transporter

wishes to reserve for a future expansion project,

Transporter may also establish a minimum acceptable term.

Transporter will use the same minimum term as used for the

expansion project if the expansion project open season is

held prior to or during the time available capacity is

posted for bid. If the expansion project open season is

held after available capacity has been reserved and/or if

the minimum term imposed on expansion shippers is materially

different from the minimum term reflected in the available

capacity posting, Transporter will repost the reserved

capacity for bid in accordance with Section 27.2 (a) or (b).

(h) Maximum Term. If available capacity is committed to a firm

transportation service agreement where service will not

commence for at least 30 days following the date capacity is

awarded, or if capacity is reserved pursuant to Section

27.2(d) for a future expansion project, Transporter will

post such capacity for use on an interim basis. In its

posting, Transporter will specify the date capacity is

subject to a prior commitment. Shippers that acquire such

capacity on an interim basis will not be eligible for a

right of first refusal as set forth in Section 27.5(a).