October 24, 2001

STEPHANIE MILLER
ENRON NORTH AMERICA CORP.
P.O. BOX 1188
HOUSTON, TX
77251

RE:	NEW RAPIDS II ACCESS AGREEMENT - PLEASE READ!!!

On the horizon for all Kern River system subscribers, is a long-awaited improvement to your contracting capabilities and elimination of the paper-intensive process for capacity release.  These enhancements track closely with changes in technology, future business practices, and GISB and FERC requirements.

After careful review of laws and regulations on electronic signature, it has been determined these enhancements will require execution of a new Electronic Bulletin Board (EBB) Access Agreement by all Kern River EBB subscribers.

The primary revision to the agreement is the addition of language that states that the subscriber’s action of executing, approving, agreeing to, or submission of a transaction on the EBB constitutes an automated transaction that becomes an enforceable agreement or contract.

Other revisions to the agreement remove specific references to system names (i.e. Rapids II) to possibly alleviate sending a new access agreement each time Williams makes a system change. 

Enclosed are two original EBB Access Agreements.  Please review the new agreement, have both copies executed by an authorized official of your company and return the agreements to me as soon as possible.  An original copy will be returned to you after Kern River executes the agreement.

Listed below are some of the benefits for system users:

•	Users will no longer have to exchange Exhibit RS and Exhibit RP paperwork with each Capacity Release Transaction;
•	Users will have the ability to view and print standard Kern River contracts and forms on-line;
•	Users will have the ability to view and print their existing contracts and new contracts for their records;
•	Users will have the ability to exchange rich-text documents with Kern River; and 
•	Users can request new services or request an amendment to existing service on-line.

Your assigned Marketing Service Representative will keep you informed about the implementation date and will be responsible for any training that you may need. Immediately following notice and training, only those who return the enclosed Access Agreement will be granted access to Kern River’s EBB.

If you do not return the enclosed Access Agreement, your company’s access to Rapids II will be terminated on December 1st, 2001, as well as your current access agreement(s).

Your ability to easily transact business on Kern River is important.  We welcome suggestions and appreciate your cooperation as we improve our systems to meet your needs.  

Sincerely,

Krystal Lamoreaux
Marketing Services Representative

Enclosures