Mojave Pipeline Company

Second Revised Volume No. 1

Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

Fifth Revised Sheet No. 241 Fifth Revised Sheet No. 241

Superseding: Fourth Revised Sheet No. 241

GENERAL TERMS AND CONDITIONS

(Continued)

9. Capacity Release Program (Continued)

9.12 Prequalification and Master Replacement Service Agreement:

(a) Any person may request that Transporter determine that it is

qualified to be a Replacement Shipper prior to submitting a

bid to purchase capacity. Such prequalification by

Transporter shall remain effective for six months subsequent

to the determination by Transporter. Any person who has

obtained a prequalification must report any subsequent

material adverse change in its situation to Transporter,

which shall then make a new determination of that person's

qualifications. If Transporter determines that any

Replacement Shipper that obtained capacity based on a

prequalification suffered a material adverse change in its

situation prior to obtaining capacity without reporting that

fact to Transporter, such Replacement Shipper must

immediately demonstrate to Transporter that it is qualified

to be a Replacement Shipper under Transporter's Tariff, or

Transporter shall have the right to terminate such

Replacement Shipper's Replacement Transportation Service

Agreement.

(b) Any person that has been prequalified as a Replacement

Shipper pursuant to Section 9.12(a) of the General Terms and

Conditions may enter into a Master Replacement Service

Agreement with Transporter that will apply to all released

capacity for which that person is the winning bidder.

9.13 Permanent Release: A Shipper may offer to make a permanent release

of capacity pursuant to the procedures of Section 9.2 or 9.3 of the

General Terms and Conditions with the Releasing Shipper fully

released from all of its obligations under its Transportation

Service Agreement and this Rate Schedule FT-1. Transporter may, on

a not unduly discriminatory basis, refuse to allow any permanent

release if it has a reasonable basis to conclude that it will not

be financially indifferent to the release. Transporter shall

provide written notification and the reasons for any denial of a

request for permanent release to the affected Releasing Shipper.

9.14 Refunds: Transporter shall make all refunds to the Releasing

Shipper. In no event shall Transporter be liable to Replacement

Shipper for refunds for providing transportation service. It shall

be Releasing Shipper's sole responsibility to flow refunds through

to its Replacement Shipper.