Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 10/01/2002, Docket: RP02-482-000, Status: Effective

First Revised Sheet No. 821 First Revised Sheet No. 821 : Superseded

Superseding: Original Sheet No. 821

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

5.3 Releases Permitted Without Prior Posting and Bidding. (Continued)

(i) the Release commences and terminates within the same

calendar Month;

(ii) the Releasing Shipper has submitted to Transporter a Release

Request with respect to the Release;

(iii) the proposed Replacement Shipper has entered into an

effective Released Transportation Service Agreement with

Transporter incorporating the information, terms and

conditions contained in the Releasing Shipper's Release

Request;

(iv) the Release is not rolled-over, renewed or otherwise

extended beyond the term described in Section 15.3(a)(I),

unless the Releasing Shipper either follows the prior

posting and bidding procedures set forth in this Article 5,

or the new or extended Release is exempt from the prior

posting and bidding procedures pursuant to the provisions of

Section 5.3(b); and

(v) the commencement date of the term of any Release under this

Section 5.3(a) is at least 28 Days after the termination

date of any previous Release under this Section 5.3(a) by

Releasing Shipper to the same Replacement Shipper, or if the

previous Release to the same Replacement Shipper occurred

either pursuant to the prior posting and bidding procedures

set forth in this Article 5 or pursuant to Section 5.3(b).

In the event the Releasing Shipper elects to release its

Transportation rights under this Section 5.3(a) without

prior posting and bidding, then Transporter shall post the

terms and conditions of the Release and the identity of the

Replacement Shipper on its Designated Site no later than

9:00 a.m. Central Clock Time.