Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 08/01/2009, Docket: RP09-723-000, Status: Effective

Fifth Revised Sheet No. 74 Fifth Revised Sheet No. 74

Superseding: Fourth Revised Sheet No. 74

. GENERAL TERMS AND CONDITIONS .

(Continued)

1. DEFINITION OF TERMS (Continued)

1.8 Demand Maximum Daily Quantity or DMDQ: the Quantity reflected in a

Shipper's Transportation Service Agreement, expressed in

Dekatherms, that is subject to the reservation/demand component of

Transporter's rates. For agreements executed on an Mcf basis,

Transporter will calculate the DMDQ using the methodology set out

in Section 25 of the General Terms and Conditions of this tariff.

1.9 Designated Site: an Internet address designated by Transporter

and any service requester for the receipt or delivery of NAESB WGQ

standardized data sets.

1.10 Elapsed Prorata Capacity: "Elapsed Prorata Capacity means that

portion of the capacity that would have theoretically been

available for use prior to the effective time of the intraday

recall based upon a cumulative uniform hourly use of the

capacity." NAESB WGQ 5.2.3.

1.11 Elapsed-Prorated-Scheduled Quantity: "Elapsed-prorated-scheduled

quantity means that portion of the scheduled quantity that would

have theoretically flowed up to the effective time of the intraday

nomination being confirmed, based upon a cumulative uniform hourly

quantity for each nomination period affected." NAESB WGQ 1.2.12.

1.12 Entitlements: primary rights to capacity.

1.13 FERC or Commission: the Federal Energy Regulatory Commission or

any federal commission, agency or other governmental body or

bodies succeeding to, lawfully exercising or superseding any

powers which, as of the date hereof, are exercisable by the

Federal Energy Regulatory Commission.

1.14 Gas or Natural Gas: any mixture of hydrocarbons or of

hydrocarbons and non-combustible gases, in a gaseous state,

consisting essentially of methane. Such Gas may be either in its

natural state produced from wells, including casinghead and

residue Gas, or after manufacture or other methods of producing

synthetic Gas.

1.15 (Reserved)