Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 05/01/2001, Docket: RP01-299-000, Status: Effective

First Revised Sheet No. 818 First Revised Sheet No. 818 : Superseded

Superseding: Original Sheet No. 818

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

5.2 Releasing Shipper's Release Request. (Continued)

(collectively, the "Release Reservation Surcharges), including any

minimum acceptable Release Reservation Rate and Release

Reservation Surcharges. The Release Reservation Rate and the

Release Reservation Surcharges shall be collectively referred to

at times in this Article 5 as the "Total Release Reservation

Charge." (If the term of the Total Release Reservation Rate begins

or ends outside of a calendar month, a daily rate must be

utilized.) The Release Request must also specify whether the

Releasing Shipper will accept bids designed on a one-part

volumetric basis for all or any portion of the Total Release

Reservation Charge and, if so, the corresponding objective,

nondiscriminatory economic standard which the Releasing Shipper

desires Transporter to utilize to determine the award of the

Release if any or all bids are submitted on a one-part volumetric

basis;

(f) whether the Release will occur on a firm recallable or

nonrecallable basis and, if on a recallable basis, the specific

terms and conditions under which recall may occur, including

whether and to what extent prior notice of the recall will be

provided by the Releasing Shipper to the Replacement Shipper;

(g) "Reput method and rights should be specified at the time of the

deal; reput method and rights are individually negotiated between

the Releasing Shipper and the Replacement Shipper." GISB 5.3.8;

(h) whether bids may be submitted on a contingency basis and, if so,

the objective, nondiscriminatory terms and conditions governing

acceptance of such bids, and all related requirements concerning

any bids submitted on a non-contingency basis; provided, however,

that any and all such contingencies must be resolved during the

evaluation period;