Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 05/01/2002, Docket: RP01-190-002, Status: Effective

Second Revised Sheet No. 817 Second Revised Sheet No. 817 : Superseded

Superseding: First Revised Sheet No. 817

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

5.2 Releasing Shipper's Release Request. (Continued)

(ii) If the Releasing Shipper permits the Replacement Shipper to

utilize Primary Receipt Points and Primary Delivery Points

in connection with the Release, then the Release Request

must also specify whether the Releasing Shipper will permit

the Replacement Shipper change the Primary Receipt Points

and Primary Delivery Points or the respective associated

Receipt Point and Delivery Point Entitlements at such

points. To the extent expressly permitted by the Releasing

Shipper and subject to any restrictions imposed by the

Releasing Shipper, the Replacement Shipper shall be entitled

to utilize any Primary Receipt Points or Primary Delivery

Points on Transporter's System in connection with the

Release, subject also to capacity availability and all

applicable terms and conditions of Transporter's Tariff.

(iii) To the extent that the Release Request expressly permits the

Replacement Shipper to utilize Primary Receipt Points and

Primary Delivery Points, then the Releasing Shipper and the

Replacement Shipper must comply with the requirements of

Section 11.1 and Section 11.2 of this Rate Schedule

regarding any required relinquishment of Receipt Point or

Delivery Point Entitlements.

(iv) The Replacement Shipper shall be entitled to utilize any

Secondary Receipt Point or Secondary Delivery Point on

Transporter's System in connection with any release, subject

to all applicable terms and conditions contained in

Transporter's Tariff.

(e) the monthly or daily reservation rate in dollars and cents or

percent of maximum tariff rate for the service to be released

("Release Reservation Rate"), and any and all other applicable

reservation charges and surcharges for the service to be released