Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 09/01/2005, Docket: RP05-456-000, Status: Effective

First Revised Sheet No. 72 First Revised Sheet No. 72 : Effective

Superseding: Original Sheet No. 72

GENERAL TERMS AND CONDITIONS

(Continued)

1. DEFINITION OF TERMS

Except where the context expressly states another meaning, the following

terms when used in this tariff and in any Transportation Service

Agreement incorporating said tariff, will be construed to have the

following meanings:

1.1 Backhaul: any Transportation that is not flowing in the same

direction as Gas flowing from the Opal Receipt Point to the

terminus of the system.

1.2 Business Day: "Business Day is defined as Monday through Friday,

excluding Federal Banking Holidays for transactions in the U.S.

and similar holidays for transactions occurring in Canada and

Mexico." NAESB WGQ 3.2.1.

1.3 British Thermal Unit: "Standardize the reporting basis for Btu as

14.73 psia and 60 degrees F (101.325 kPa and 15 degrees C, and

dry). Standardize the reporting basis for gigacalorie as 1.035646

Kg/cm2 and 15.6 degrees C and dry. Standardize the reporting

basis for gas volumes as cubic foot at standard conditions of

14.73 psia, 60 degrees, F and dry. For gas volumes reported in

cubic meters, the standard conditions are 101.325 kPa, 15 degrees

C, and dry." NAESB WGQ 2.3.9.

1.4 Composite Gas Stream: the composite of all Gas receipts and/or

nominations from Shippers for Transportation by Kern River.

Composite Gas Stream will be the theoretical Gas stream that will

result from the combination of all Gas receipts from all Shippers

as determined by a computer model that utilizes analytical and

flow data generated at each of the Receipt Points. The computer

model determines what the Composite Gas Stream composition will be

on a feed forward basis.