Kern River Gas Transmission Company

Second Revised Volume No. 1

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

First Revised Sheet No. 831 First Revised Sheet No. 831 : Superseded

Superseding: Original Sheet No. 831

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

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

on Transporter's Designated Site prior to the applicable deadline

that all such contingencies have not been satisfied. Upon

receipt, the Replacement Shipper shall verify the accuracy of the

relevant Exhibit "RP", and shall return the verified exhibit to

Transporter within five Business Days of receipt. Failure by the

Replacement Shipper to return the relevant verified exhibit to

Transporter in a timely manner shall entitle Transporter to

suspend or terminate service to the Replacement Shipper provided

in connection with the Release. Transporter shall notify both the

Releasing Shipper and the Replacement Shipper: (i) if the relevant

Exhibit "RP" has not been timely verified, and (ii) prior to

suspension or termination of service to the Replacement Shipper

for failure to verify timely the relevant Exhibit "RP". Service

to the Replacement Shipper shall commence and continue in

accordance with the terms and conditions of the Released

Transportation Service Agreement and the relevant Exhibit "RP",

and service to the Releasing Shipper shall commence in accordance

with the terms and conditions of the Releasing Shipper's Service

Agreement and the relevant Exhibit "RS", regardless of whether

Transporter has first posted the terms and conditions of the

successful bid pursuant to Section 5.6(c).

5.8 Applicable Deadlines.

(a) NAESB 5.3.1: "The Capacity Release timeline is applicable to all

parties involved in the Capacity Release process; however, it is

only applicable if 1) all information provided by the parties to

the transaction is valid and the Replacement Shipper has been

determined to be credit worthy before the bid is tendered and 2)

there are no special terms or conditions of the release."

Pursuant to NAESB Standard 5.3.2, the capacity release timeline

set forth below in Central Clock Time will apply.