Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 09/06/2004, Docket: RP04-444-000, Status: Effective

First Revised Sheet No. 373 First Revised Sheet No. 373 : Effective

Superseding: Original Sheet No. 373


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of Transporter's tariff, and will be entitled and subject to all of the

rights and the obligations thereof. Replacement Shipper may release all

or any portion of its Transportation service rights under this

Agreement, but only if such Release is pursuant to the terms and

conditions of Transporter's tariff, including without limitation the

terms and conditions of Section 15.


2.2 Transporter expressly reserves all rights granted to Transporter by any

applicable Base Transportation Service Agreement, governing rate

schedule, and all other applicable provisions of its tariff, to file

with the FERC and to place into effect unilaterally such changes as

Transporter deems necessary or desirable from time to time in the rates,

charges, terms and conditions applicable to service under the Base

Transportation Service Agreement, Transporter's tariff, or this

Agreement, in order to assure Transporter just and reasonable rates,

charges and terms and conditions of service.


2.3 Replacement Shipper expressly understands and agrees that Replacement

Shipper will not be entitled to receive any released firm Transportation

service under this Agreement for which Replacement Shipper has not first

established sufficient creditworthiness with Transporter pursuant to the

applicable provisions of Transporter's tariff. Replacement Shipper also

expressly understands and agrees that the creditworthiness requirements

pertaining to any released Transportation service received by

Replacement Shipper under this Agreement are continuing in nature for

the entire Release Term of the relevant Release, and that Transporter

will not be obligated to continue to provide service to Replacement

Shipper if Replacement Shipper does not maintain satisfactory

creditworthiness at all times during the Release Term of the relevant