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. 50 Third Revised Sheet No. 50 : Effective

Superseding: Second Revised Sheet No. 50

. RATE SCHEDULE KRI-1 .

KERN RIVER INTERRUPTIBLE TRANSPORTATION SERVICES

1. AVAILABILITY

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

an interruptible basis by Kern River Gas Transmission Company

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

"Shipper"):

(a) which executes a Transportation Service Agreement for service

hereunder and

(b) to the extent that capacity is available on Transporter's system

from time to time for the delivery of Gas to Transporter and the

redelivery by Transporter for the account of Shipper.

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.

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) specified in Shipper's Transportation Service

Agreement, 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) 1/ on an interruptible basis;

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 Points specified in Shipper's Transportation

Service Agreement.

1/ For Transportation Service Agreements executed in Mcfs, a Shipper's MDQ

will be its TMDQ.