Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 04/01/2005, Docket: RP04-274-008, Status: Pending

1st Rev Eleventh Revised Sheet No. 5-A 1st Rev Eleventh Revised Sheet No. 5-A : Pending

Superseding: 3rd Sub Tenth Revised Sheet No. 5-A

STATEMENT OF RATES 1/

RATE SCHEDULE KRF-1

FIRM INCREMENTAL RATE SERVICE

2003 EXPANSION PROJECT

(RATES PER DTH)

Base

Tariff ACA Rate After

Rate Surcharge Surcharges 2/

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

Recourse Rate:

Daily Reservation/Demand Rate 3/

Maximum $ 0.5847 $ 0.5847

Minimum $ 0.0000 $ 0.0000

10-Year Rate:

Daily Reservation/Demand Rate 3/

Maximum $ 0.5847 $ 0.5847

Minimum $ 0.0000 $ 0.0000

15-Year Rate:

Daily Reservation/Demand Rate 3/

Maximum $ 0.4455 $ 0.4455

Minimum $ 0.0000 $ 0.0000

Firm Transportation Commodity/Usage Rate:

Maximum $ 0.0600 $ 0.0019 $ 0.0619

Minimum $ 0.0038 $ 0.0019 $ 0.0057

Authorized Overrun Rate:

Maximum $ 0.6420 $ 0.0019 $ 0.6439

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/ 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, Shippers receiving firm incremental rate service on the 2003

Expansion Project are subject to an electric compressor fuel surcharge for

quantities scheduled for delivery downstream of the Daggett compressor

station. The surcharge is $0.0000/Dth for quantities within contract demand

and a credit of ($0.0008)/Dth for authorized overrun quantities.

3/ 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.