Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2002, Docket: RP02-237-001, Status: Effective

Sub First Revised Sheet No. 842 Sub First Revised Sheet No. 842 : Superseded

Superseding: Original Sheet No. 842

RATE SCHEDULE SH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE 5 - CAPACITY RELEASE PROGRAM (Continued)

5.11 Further Conditions on Release of Transportation Rights. (Continued)

(h) All Transportation rights released hereunder shall be scheduled

and curtailed as firm Transportation service under Article 10 of

this Rate Schedule. Interruption or curtailment of such released

service shall be in accordance with interruption or curtailment of

firm service under this Tariff, and additionally as may be

prescribed by the terms and conditions of the release.

(i) Notwithstanding any other provision set forth in this Article 5,

Transporter shall have no liability of any nature whatsoever to

any party in connection with the performance or nonperformance of

any of Transporter's obligations set forth in this Article 5,

except to the extent that any such liabilities arise solely from

Transporter's negligent performance of any obligations for which

Transporter is solely and directly responsible.

5.12 Marketing Fee Agreement. Transporter shall be entitled to receive a

marketing fee from the Releasing Shipper in the event Transporter and

the Releasing Shipper agree that Transporter will actively market the

Transportation rights to be released. All of the terms and conditions

pertaining to the provision of such marketing services by Transporter

shall be set forth in a written agreement executed by Transporter and

the Releasing Shipper.