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. 75 Fifth Revised Sheet No. 75

Superseding: Fourth Revised Sheet No. 75

. GENERAL TERMS AND CONDITIONS .

(Continued)

1. DEFINITION OF TERMS (Continued)

1.16 Guarantor: any person or entity which is creditworthy as

determined in accordance with the creditworthiness requirement for

the service provided hereunder and has agreed to be responsible

for the debts of Shipper under the Transportation Service

Agreement.

1.17 Interconnect Operator: any person or entity responsible for the

operation and/or maintenance of the facilities connected with the

Transporter's facilities.

1.18 Intra-Day Nomination: "An intra-day nomination is a nomination

submitted after the nomination deadline whose effective time is no

earlier than the beginning of the gas day and runs through the end

of that gas day." NAESB WGQ 1.2.4.

1.19 MDQ or Maximum Daily Quantity: for firm service agreements that

were executed on an Mcf basis, the maximum Volume of Natural Gas

(exclusive of fuel used and lost and unaccounted-for gas) which

Transporter is obligated to receive for Transportation from

Shipper on any Day at the Receipt Points specified in the

Transportation Service Agreement. Transporter will convert the

MDQ to a TMDQ using the methodology set out in Section 25 of the

General Terms and Conditions of this tariff.

1.20 Month: the period beginning at 9:00 a.m. CCT on the first Day of

the calendar Month and ending at 9:00 a.m. CCT on the first Day of

the succeeding calendar Month.

1.21 NAESB WGQ: The Wholesale Gas Quadrant ("WGQ") of the North

American Energy Standards Board ("NAESB"), successor to the Gas

Industry Standards Board or GISB. Transporter shall update its

tariff, as necessary, to incorporate new or amended NAESB WGQ

Standards approved by the Commission. Transporter currently

incorporates either by reference or verbatim the most recent

version of the standards, Version 1.8, promulgated September 30,

2006, by NAESB WGQ and the standards contained in Recommendation

R08026 (January 6, 2009).

1.22 Negotiated Rate: a rate or formula for computing a rate for

Transportation service which may be greater than, equal to or less

than the Recourse Rate, but which may not be less than the Minimum

Base Tariff Rate as set forth on Sheet No. 5, 5-A or 6. A

Negotiated Rate must be mutually agreed upon by Transporter and

Shipper for a specific time period and may be based on a rate

design other than the rate design used to compute Transporter's

currently effective rates.