Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 09/06/2004, Docket: RP04-444-000, Status: Effective

Third Revised Sheet No. 10 Third Revised Sheet No. 10 : Effective

Superseding: Second Revised Sheet No. 10

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RATE SCHEDULE KRF-1

KERN RIVER FIRM TRANSPORTATION SERVICES

1. AVAILABILITY

This rate schedule is available for the Transportation of Natural Gas on

a firm basis by Kern River Gas Transmission Company (hereinafter called

"Transporter") to any shipper (hereinafter called "Shipper"):

(a) which desires firm service and to the extent Transporter has

available capacity to render such firm service for Shipper; and

(b) which executes a Transportation Service Agreement for service

hereunder.

2. APPLICABILITY AND CHARACTER OF SERVICE

2.1 This rate schedule will apply to Gas transported by Transporter

for Shipper pursuant to the executed Transportation Service

Agreement for service under this rate schedule, which does not

include service on the High Desert Lateral as described in Rate

Schedule KRF-L1. As used in this rate schedule, Transporter's

system does not include the High Desert Lateral.

Shippers under this rate schedule additionally may release their

rights to Transportation service on a permanent or temporary basis

pursuant to the terms of Section 15 of the General Terms and

Conditions of this tariff.

2.2 Service rendered under this rate schedule will consist of:

(a) The receipt by Transporter of Shipper's Gas at the Receipt

Point(s), including Quantities for fuel used and lost and

unaccounted-for gas that Shipper is obligated to provide

pursuant to Section 12 of the General Terms and Conditions

of this tariff; and

(b) The Transportation of Gas up to Shipper's Transportation

Maximum Daily Quantity (TMDQ) on a firm basis, subject to

Section 13 of the General Terms and Conditions of this

tariff; and

Transportation (less any fuel used and lost and unaccounted-

for gas pursuant to Section 12 of the General Terms and

Conditions of this tariff) by Transporter to Shipper at the

Delivery Point(s).