Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 01/01/2009, Docket: RP09-102-000, Status: Effective

First Revised Sheet No. 5B First Revised Sheet No. 5B

Superseding: Sub Original Sheet No. 5B

. STATEMENT OF RATES 1/(Continued) .

RATE SCHEDULE KRF-1

FIRM INCREMENTAL RATE SERVICE

2003 EXPANSION PROJECT

(RATES PER DTH)

RATES FOR NON-SETTLING PARTIES*(Continued)

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 $ 0.0017 $ 0.0617

Minimum $ 0.0038 $ 0.0017 $ 0.0055

Authorized Overrun Rate:

Maximum $ 0.7025 $ 0.0017 $ 0.7042

Minimum $ 0.0038 $ 0.0017 $ 0.0055

* A Settling Party is a party that has executed the Offer of Settlement and

Stipulation ("Stipulation") submitted to the Federal Energy Regulatory

Commission on September 30, 2008, in Docket Nos. RP04-274-000, et al.,

including any party that has subsequently executed or accepted the Stipulation

in accordance with its terms.

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 from the Dag Moj receipt point to any

upstream delivery point, or from any receipt point on Transporter's system to

delivery points downstream of the Daggett compressor station. The surcharge

is a credit of $0.0001/Dth for quantities within contract demand and

$0.0000/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.