Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 01/01/2003, Docket: RP00-337-003, Status: Effective

Second Revised Sheet No. 825 Second Revised Sheet No. 825 : Superseded

Superseding: First Revised Sheet No. 825

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

5.5 Bidding for Transportation Rights. (Continued)

(ii) the Releasing Shipper's Service Agreement number and the

Release Request number to which the bid relates;

(iii) the Total Release Reservation Charge, including the Release

Reservation Rate and the Release Reservation Surcharges,

that the Bidder is willing to pay for the released

Transportation rights, which must be no less than any

respective minimum Total Release Reservation Charge, Release

Reservation Rate, or Release Reservation Surcharges

specified in the Release Request, and no less than any

respective minimum Tariff Reservation Rate or Tariff

Reservation Surcharges. The Bidder must also specify

whether the Total Release Reservation Charge will be paid in

whole or in part on a one-part volumetric basis, to the

extent permitted by the Releasing Shipper;

(iv) the DMDQ for the bid, which must be no less than any minimum

DMDQ and no more than any maximum DMDQ specified in the

Release Request;

(v) the proposed date of commencement and date of expiration of

the Release Term, which must be consistent with the Release

Term specified in the Release Request;

(vi) the primary Receipt Point and primary Delivery Point

Entitlements that it wishes to acquire, subject to Section

26.2(b) of the General Terms and Conditions of this tariff;