Mark, Attached is the letter agreement we discussed. Please review. It is rough. Some issues to note: 1. The Kern PA cannot be assigned without their consent, which shall not be unreasonably withheld. If Kern didn't like the fact that we are receiving assignment from 3 or 4 other shippers, they might withhold consent if they thought we were superceding their bid procedures. Not sure if they would, but it is a risk. 2. If the assignment is done after the producer executes the firm transport agreement, Kern could require to capacity to be released via capacity release at max rate. 3. I took a stab at the mark-to-market calculation. Probably needs more substance though. Lets discuss.
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Kern River Bid Letter