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. 377 First Revised Sheet No. 377 : Effective

Superseding: Original Sheet No. 377

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FORM OF RELEASED TRANSPORTATION SERVICE AGREEMENT (Continued)

ARTICLE VII - GOVERNMENTAL BODIES

7.1 Notwithstanding any other provision hereof, this Agreement will be

subject to all laws, statutes, ordinances, regulations, rules and orders

of any and all governmental entities now or hereafter having

jurisdiction.

ARTICLE VIII - INDEMNIFICATION

8.1 Replacement Shipper recognizes that its rights to Transportation service

hereunder are solely those rights set forth in this Agreement, including

any and all effective Exhibits "RP" and Exhibits "RS" hereto.

Replacement Shipper agrees that it will indemnify Transporter against

any claim or suit of any kind by any Releasing Shipper, its successors

or assigns arising from any action taken by Transporter in reliance upon

the nominations, scheduling instructions or other communications from

Replacement Shipper or its agents with respect to the Transportation

service provided to Replacement Shipper pursuant to the terms and

conditions set forth in any effective Exhibit "RP" hereto, except to the

extent such claim or suit results directly from the negligence of

Transporter. Replacement Shipper further agrees that it will hold

Transporter harmless for any action taken by Transporter in reliance

upon the nominations, scheduling instructions or other communications of

the relevant Releasing Shipper or its agents, except to the extent of

Transporter's negligence in taking any such action. Replacement Shipper

further recognizes and agrees that Transporter will have no obligation

to honor any nomination or scheduling request from Replacement Shipper

or its agents that in Transporter's sole opinion conflicts with

communications or instructions received by Transporter from any

Releasing Shipper (or its agents) from which Replacement Shipper has

acquired Transportation rights as reflected in an effective Exhibit "RP"

to this Agreement.