Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 11/01/2004, Docket: RP04-274-008, Status: Pending

2nd Sub Thirteenth Revised Sheet No. 5 2nd Sub Thirteenth Revised Sheet No. 5 : Pending

Superseding: Sub Thirteenth Revised Sheet No. 5

STATEMENT OF RATES 1/

RATE SCHEDULES KRF-1, CH-1, UP-1, MO-1, SH-1

FIRM ROLLED-IN RATE SERVICE 2/

(RATES PER DTH)

Base

Tariff ACA Rate After

Rate Surcharge Surcharges 3/

------- --------- -------------

Recourse Rate:

Daily Reservation/Demand Rate 4/

Maximum $ 0.4450 $ 0.4450

Minimum $ 0.0000 $ 0.0000

10-Year Rate:

Daily Reservation/Demand Rate 4/

Maximum $ 0.4450 $ 0.4450

Minimum $ 0.0000 $ 0.0000

15-Year Rate:

Daily Reservation/Demand Rate 4/

Maximum $ 0.3292 $ 0.3292

Minimum $ 0.0000 $ 0.0000

Firm Transportation Commodity/Usage Rate:

Maximum $ 0.0600 $ 0.0019 $ 0.0619

Minimum $ 0.0011 $ 0.0019 $ 0.0030

Authorized Overrun Rate:

Maximum $ 0.6100 $ 0.0019 $ 0.6119

Minimum $ 0.0023 $ 0.0019 $ 0.0042

1/ All costs included in rates are transmission costs. Kern River provides no

storage or gathering services.

2/ Rates for incrementally-priced firm transportation under Rate Schedule KRF-

1 for the 2003 Expansion Project shippers are set out separately on Sheet No.

5-A.

3/ Transportation rates set forth herein are exclusive of fuel used and lost

and unaccounted-for gas, which all Shippers must furnish in-kind each Day by

applying a fuel reimbursement factor to Receipt Point nominations, pursuant to

Section 12 of the General Terms and Conditions.

In addition, rolled-in rate shippers are subject to an electric compressor

fuel surcharge for quantities scheduled for delivery downstream of the Daggett

compressor station. The surcharge is a credit of ($0.0082)/Dth for quantities

within contract demand and a credit of ($0.0042)/Dth for authorized overrun

quantities.

4/ All reservation rates are daily rates computed on the basis of 365 days

per year, except that such rates for leap years are computed on the basis of

366 days.