All Shipper Notice ID: 2001-041 

To:	KERN RIVER SHIPPERS AND OPERATORS

Date:	April 24, 2001

Re:	Interruptible and/or Authorized Overrun Capacity for May 2001

Kern River anticipates that there will be between 30,000 and 45,000 Mcf/d of capacity available for Interruptible Service ("IT") and/or Authorized Overrun Service ("AOS") for May 2001.
 
In order to accommodate shippers desire to finalize transportation arrangements during bid week, any shipper that is interested in utilizing this capacity must submit a request for IT and/or AOS transportation service to Kern River by no later than 5:00 p.m. MST on Wednesday, April 25.  If you wish to request the above capacity, you can do so in writing or via a phone call to Jeff Leishman.  Kern River will notify each requesting shipper of their position in the queue by 1:00 P.M. on Thursday, April 26.

Kern River will evaluate and establish a queue for all requests received by the deadline pursuant to the scheduling priorities in its tariff.  The queue will be established according to rate, highest rate first. (Kern River does not discount AOS.) If rates are equal, the queue will be established using the shipper's priority of service date.  If priority of service dates are equal, the queue will be split between such shippers pro rata based on requests.   Both of the preceding tiebreaker's are as per the Kern River Tariff.  During the month, if a shipper that is flowing IT or AOS, discontinues service, Kern River will offer the service to the next shipper in the queue for that month.

In addition to the monthly available capacity, as described above, there may be capacity that becomes available on a given day due to a supply or market failure of a shipper. These requests will only get scheduled if there is unutilized capacity.  This capacity, like all IT and AOS capacity, will be allocated by rate.  Due to the adverse impact of creating imbalances for shippers on upstream pipelines, the receipt point for this "intra-day" transportation cannot be Northwest Pipeline or CIG.  Based upon historical data, Kern River estimates that capacity to be approximately 7,000 Mcf/d on weekdays and 12,000 Mcf/d on weekends. If you are interested in submitting intra-day nominations between the evening and ID1 cycle to fill these "holes", please submit a separate request for "intra-day capacity".  Submitting an intra-day request will determine your place in the queue for filling the "holes" for the entire month. 

Please contact Jeff Leishman at (801) 584-6682, or Dave Stevens at (801) 584-7101, with any questions regarding this matter.  Our fax number is (801) 584-7076.