Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/01/2009, Docket: RP09-616-000, Status: Effective

Fourth Revised Sheet No. 16 Fourth Revised Sheet No. 16

Superseding: Third Revised Sheet No. 16

RATE SCHEDULE KRF-1

KERN RIVER FIRM TRANSPORTATION SERVICES

(Continued)

5. RATES AND CHARGES (Continued)

5.4 ACA Surcharge. An amount obtained by multiplying (i) the Quantity

of Gas received by Transporter from Shipper for Transportation

during the Month, exclusive of Quantities for fuel used and lost

and unaccounted-for gas, by (ii) the FERC Annual Charge Adjustment

("ACA") Surcharge as set forth on Sheet No. 5 or 5-A of

Transporter's effective tariff.

5.5 Authorized Overrun Charge. The authorized overrun charge shall be

an amount obtained by multiplying (a) the Quantity of Gas, in Dth,

scheduled as Authorized Overrun Service, by (b) the Authorized

Overrun Rate per Dth as set forth on Sheet No. 5 or 5-A of

Transporter's effective tariff, unless otherwise agreed to by

Shipper and Transporter.

5.6 Minimum Monthly Bill. The minimum monthly bill will be the

Reservation Charge for each Month, unless Transporter and Shipper

mutually agree otherwise.