Kern River Gas Transmission Company

Second Revised Volume No. 1

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

2nd Sub Eleventh Revised Sheet No. 6 2nd Sub Eleventh Revised Sheet No. 6 : Pending

Superseding: Sub Eleventh Revised Sheet No. 6

STATEMENT OF RATES 1/

RATE SCHEDULE KRI-1

INTERRUPTIBLE SERVICE

(RATES PER DTH)

Base

Tariff ACA Rate After

Rate Surcharge Surcharges 2/

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

Interruptible Transportation 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/ 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, quantities of Gas scheduled for delivery downstream of the

Daggett compressor station on an interruptible basis are subject to an

electric compressor fuel surcharge credit of ($0.0042)/Dth.