Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 04/01/2010, Docket: RP10-449-000, Status: Effective

2nd Rev 2nd Rev 16th Rev Sheet No. 5A 2nd Rev 2nd Rev 16th Rev Sheet No. 5A

Superseding: 1st Rev 2nd Rev 16th Rev Sheet No. 5A

. STATEMENT OF RATES 1/ .

RATE SCHEDULE KRF-1

FIRM INCREMENTAL RATE SERVICE

2003/2010 EXPANSION PROJECTS

(RATES PER DTH)

Base

Tariff ACA Rate After

Rate Surcharge Surcharges 2/

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

Recourse Rate:

Daily Reservation/Demand Rate 3/

Maximum $ 0.6425 $ 0.6425

Minimum $ 0.0000 $ 0.0000

10-Year Rate:

Daily Reservation/Demand Rate 3/

Maximum $ 0.6425 $ 0.6425

Minimum $ 0.0000 $ 0.0000

15-Year Rate:

Daily Reservation/Demand Rate 3/

Maximum $ 0.5256 $ 0.5256

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 $ 0.7025 $ 0.0019 $ 0.7044

Minimum $ 0.0038 $ 0.0019 $ 0.0057

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 2003/2010

Expansion Projects are subject to an electric compressor fuel surcharge for

quantities scheduled for delivery from any receipt point on Transporter's

wholly-owned system to delivery points downstream of the Daggett compressor

station. The surcharge is $0.0001/Dth for quantities within contract demand

and $0.0001/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.