Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/01/2000, Docket: RP00-288-000, Status: Effective

Original Sheet No. 820 Original Sheet No. 820 : Superseded

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

5.2 Releasing Shipper's Release Request. (Continued)

(iii) a statement which represents and warrants that the

Prearranged Bidder has entered into a binding agreement with

the Releasing Shipper to accept the Transportation rights on

the terms and conditions prescribed in the Release Request.

Upon Transporter's request, the Releasing Shipper shall

provide Transporter with a true and complete copy of a fully

executed written agreement between the Releasing Shipper and

the Prearranged Bidder concerning the proposed Release.

(m) whether there are any restrictions upon the Replacement Shipper's

right to release subsequently any or all of the transportation

rights received from the Releasing Shipper under the Release; and

(n) any other terms and conditions of the Release, including whether

Releasing Shipper will require Replacement Shipper to execute a

contract with the Releasing Shipper with respect to the Release, a

copy of which shall be provided by Releasing Shipper to any Bidder

upon request. In the event of a conflict, the terms and

conditions of Transporter's Tariff, the Base Firm Transportation

Service Agreement, and the Released Transportation Service

Agreement shall take precedence over the terms and conditions

contained in any such contract between the Releasing Shipper and

the Replacement Shipper.

5.3 Releases Permitted Without Prior Posting and Bidding. A Releasing

Shipper may, at its option, elect to release some or all of its

Transportation rights without following the prior posting and bidding

procedures set forth in this Article 5, if its proposed Release

qualifies under this Section 5.3.

(a) Less than 31 Day Release Election. Prior posting and bidding

pursuant to the procedures set forth in this Article 5 will not be

required if: