Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 02/01/2006, Docket: RP06-160-000, Status: Effective

Fourth Revised Sheet No. 60 Fourth Revised Sheet No. 60 : Effective

Superseding: Third Revised Sheet No. 60

RATE SCHEDULE KRI-1

KERN RIVER INTERRUPTIBLE TRANSPORTATION SERVICES

(Continued)

(b) Downward adjustment to any rate will be for a specified

term. At the expiration of such term, the rate for

transportation services will revert to the maximum allowable

rate under this Schedule.

5.8 Negotiated Rates. Notwithstanding the foregoing provisions of this

Section 5, Transporter and Shipper may mutually agree to

Negotiated Rates for service hereunder as provided in Section 23

of the General Terms and Conditions. ACA surcharges pursuant to

Section 5.3 and imbalance charges and/or scheduling penalties

pursuant to Section 5.6 of this rate schedule, as well as fuel

reimbursement pursuant to Section 12 of the General Terms and

Conditions of this tariff will be applied to Shippers paying

Negotiated Rates in the same manner as they are applied to

Shippers paying Recourse Rates.

6. PRIORITY OF SERVICE

A Shipper receiving service under Rate Schedule KRI-1 will not lose its

priority of service by the renewal or extension of the term of that

service; provided, however any renewal or extension must be pursuant to

a rollover or evergreen provision of the Transportation Service

Agreement.

7. GENERAL TERMS AND CONDITIONS

The General Terms and Conditions contained in Transporter's effective

tariff, except as modified in the executed Transportation Service

Agreement, are applicable to this Rate Schedule and are hereby made a

part hereof. Shipper will provide Transporter with such information as

is needed to meet the requirements placed on Transporter by regulation,

rule, and/or order.