Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Fourth Revised Sheet No. 77 Fourth Revised Sheet No. 77 : Effective

Superseding: Third Revised Sheet No. 77

GENERAL TERMS AND CONDITIONS

(Continued)

1. DEFINITION OF TERMS (Continued)

1.29 Thermally Equivalent: an equal number of Btu's. The

determination of Thermally Equivalent Quantities will be

accomplished by multiplying the unit of measurement, as provided

in paragraph 2.2 of Section 2, by the Total Heating Value adjusted

to the standard conditions of the measured Quantities.

1.30 Total Heating Value: the number of Btu's liberated by the complete

combustion of one Cubic Foot of Gas. The average Total Heating

Value in any Month will be the Volume weighted average of the

Total Heating Values for each Day during such Month, adjusted to

reflect the actual water vapor content of the Gas delivered.

1.31 Transportation: the receipt of Gas of Shipper at Receipt Points

on Transporter's transmission system (referred to as "Receipt

Points"), and the delivery of Thermally Equivalent Quantities by

Transporter to Shipper or for Shipper's account (after making

allowance for any requisite fuel and loss reimbursement) to

Delivery Points on Transporter's transmission system (referred to

as "Delivery Points").

1.32 Transportation Maximum Daily Quantity or TMDQ: the Quantity

reflected in a Shipper's Transportation Service Agreement,

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

expressed in Dekatherms, that Transporter is obligated to receive

for Transportation from Shipper on any Day at the Receipt Points,

and transport and deliver on any Day to the Delivery Points

specified in Shipper's Transportation Service Agreement. For

agreements executed on an Mcf basis, 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 33 Transporter: Kern River Gas Transmission Company.

1.34 Volume: the number of units of Gas, either specified in Mcf or

Dth.

1.35 Year: a period of 365 consecutive Days; provided, however, that

any such Year which contains a date of February 29 will consist

of 366 consecutive Days