Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 09/06/2004, Docket: RP04-444-000, Status: Effective

First Revised Sheet No. 339 First Revised Sheet No. 339 : Effective

Superseding: Sub Original Sheet No. 339

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FORM OF PARK AND LOAN SERVICE AGREEMENT

(Applicable to Park and Loan Service Under Rate Schedule PAL)

CONTRACT NO. _______

THIS AGREEMENT is made and entered into this _____ day of ______ by and

between KERN RIVER GAS TRANSMISSION COMPANY, a Texas general partnership,

hereinafter called "Transporter," and ____________________________,

hereinafter called "Shipper."

WHEREAS, Shipper desires Park and/or Loan ("PAL") service from Transporter in

accordance with Transporter's Rate Schedule PAL, on file with the FERC, as

amended from time to time; and

WHEREAS, Transporter is willing to render such PAL service when capacity is

available;

NOW, THEREFORE, in consideration of the mutual covenants and agreements as

herein set forth, the parties hereto agree as follows:

ARTICLE I - MAXIMUM PARK AND/OR LOAN QUANTITIES

1.1 Subject to the terms, conditions and limitations hereof, Transporter

agrees to park and/or loan natural Gas for Shipper at the PAL Point, up

to a Maximum Park Quantity or a Maximum Loan Quantity of ___________Dth

during any month.

ARTICLE II - APPLICABLE RATE SCHEDULE

2.1 Shipper agrees to pay Transporter for all PAL service rendered under the

terms of this Agreement in accordance with Transporter's Rate Schedule

PAL, as filed with the FERC to be effective on the date Transporter

commences service, and as amended from time to time. This Agreement

will be subject to the provisions of such Rate Schedule and the General

Terms and Conditions applicable thereto on file with the FERC and as

amended from time to time, which by this reference are incorporated

herein and made a part hereof.

2.2 Shipper's rates for PAL service are subject to the parties'

understanding and agreement that in accordance with Transporter's

effective Rate Schedule PAL, Transporter may change the rates from time

to time in accordance with the Natural Gas Act and applicable

regulations thereunder.