Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 10/01/2008, Docket: RP04-274-014, Status: Pending

2nd Sub 3rd Rev 5th Revised Sheet No. 7 2nd Sub 3rd Rev 5th Revised Sheet No. 7

Superseding: 2nd Rev Fifth Revised Sheet No. 7

. STATEMENT OF RATES 1/ .

RATE SCHEDULES KRF-L1 AND KRI-L1

HIGH DESERT LATERAL SERVICE

(RATES PER DTH)

The rates shown below are those rates which Transporter is authorized to

charge for service rendered under Rate Schedules KRF-L1 and KRI-L1.

Base

Tariff ACA Rate After

Rate Surcharge Surcharge

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

KRF-L1 Recourse Rate:

Daily Reservation/Demand Rate 2/:

Maximum $ 0.0463 $ 0.0463

Minimum $ 0.0000 $ 0.0000

Firm Transportation Commodity/Usage Rate:

Maximum $ 0.0000 $ 0.0017 $ 0.0017

Minimum $ 0.0000 $ 0.0017 $ 0.0017

Authorized Overrun Rate:

Maximum $ 0.0463 $ 0.0017 $ 0.0480

Minimum $ 0.0000 $ 0.0017 $ 0.0017

KRI-L1 Recourse Rate:

Interruptible Transportation Rate:

Maximum $ 0.0463 $ 0.0017 $ 0.0480

Minimum $ 0.0000 $ 0.0017 $ 0.0017

1/ All costs included in rates are transmission costs. Kern River provides no

storage or gathering services.

2/ 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.