Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 08/01/2004, Docket: RP04-339-000, Status: Effective

Fifth Revised Sheet No. 15 Fifth Revised Sheet No. 15 : Effective

Superseding: Fourth Revised Sheet No. 15

RATE SCHEDULE KRF-1

KERN RIVER FIRM TRANSPORTATION SERVICES

(Continued)

5. RATES AND CHARGES

5.1 Applicable Rates and Charges. The rates and charges for service

under this rate schedule will be the Reservation Charge,

Transportation Charge, ACA Charge, Authorized Overrun Charge,

Incidental Charges, and any Imbalance Charge and/or Scheduling

Penalties, if applicable, all as specified in Sections 5.2, 5.3,

5.4, 5.5, 5.7, and 5.8 of this rate schedule.

5.2 Reservation Charge. For Shippers with whom Transporter has

negotiated a reservation rate, an amount obtained by multiplying

(a) Shipper's DMDQ as stated in the Transportation Service

Agreement, or as calculated using the methodology set out in

Section 25 of the General Terms and Conditions of this tariff, by

(b) an amount per Dth which will be no greater than the applicable

Maximum Daily Reservation/Demand Rate as shown on Sheet No. 5 of

Transporter's effective tariff, and multiplying the result by (c)

the number of days in the Month. Unless the parties otherwise

agree, the applicable Maximum Daily Reservation/Demand Rate will

apply.

5.3 Transportation Charge. An amount obtained by multiplying (a) the

Quantity of Gas in Dth received by Transporter from Shipper for

Transportation during the Month, exclusive of Quantities for fuel

used and lost and unaccounted-for gas as provided in Section 12 of

the General Terms and Conditions of this tariff, by (b) an amount

per Dth, no less than the Minimum Firm Transportation Rate nor

greater than the Maximum Firm Transportation Rate, each as set

forth on Sheet No. 5 or 5-A of Transporter's effective tariff.