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Original Sheet No. 830 Original Sheet No. 830 : Superseded

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

5.7 Exhibit "RP" and Exhibit "RS". (Continued)

Tariff shall likewise be prepared by Transporter and transmitted

to the Releasing Shipper to reflect that the Releasing Shipper has

released all or a portion of its Transportation rights, and which

contains all applicable terms and conditions of the Release.

(b) A Replacement Shipper that subsequently obtains a separate Release

from either the same or a different Releasing Shipper by

successfully bidding on a subsequent Release Request shall not

execute an additional Released Transportation Service Agreement;

rather, the terms and conditions of each such additional Release

shall be the subject of an appropriate additional Exhibit "RP"

(designated sequentially as "Exhibit RP-1", "Exhibit RP-2", etc.)

to be added to such Replacement Shipper's Released Transportation

Service Agreement. The Releasing Shipper shall likewise receive

an appropriate additional Exhibit "RS" (designated sequentially as

"Exhibit RS-1", "Exhibit RS-2", etc.) to the Releasing Shipper's

Service Agreement reflecting the terms and conditions of any

subsequent Release of the Releasing Shipper's Transportation

rights.

(c) Transporter shall prepare all initial and additional exhibits for

Releasing Shippers and Replacement Shippers based on the

applicable information and terms and conditions set forth in the

applicable Release Request and the successful bid. Each such

exhibit shall be deemed incorporated in the Transportation service

agreement to which it relates, and shall thereby be deemed to

amend both such agreements effective upon the date of the

commencement of the term of the relevant Release without execution

by Transporter, the Releasing Shipper, or the Replacement Shipper;

provided, however, that any such exhibit shall be deemed

ineffective and otherwise null and void if the relevant Release

was acquired subject to any contingencies and the Replacement

Shipper notifies Transporter either in writing or electronically