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. 5.01 First Revised Sheet No. 5.01

Superseding: Sub Original Sheet No. 5.01

. STATEMENT OF RATES 1/(continued) .

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

FIRM ROLLED-IN RATE SERVICE 2/

(RATES PER DTH)

RATES FOR NON-SETTLING PARTIES*(Continued)

15-Year Rate:

Daily Reservation/Demand Rate 4/

Maximum $ 0.3973 $ 0.3973

Minimum $ 0.0000 $ 0.0000

Firm Transportation Commodity/Usage Rate:

Maximum $ 0.0600 $ 0.0017 $ 0.0617

Minimum $ 0.0011 $ 0.0017 $ 0.0028

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/ 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 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 $0.0000/Dth for quantities within contract demand

and $0.0000/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.