Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2003, Docket: RP03-374-000, Status: Effective

Third Revised Sheet No. 80 Third Revised Sheet No. 80 : Effective

Superseding: Second Revised Sheet No. 80

GENERAL TERMS AND CONDITIONS

(Continued)

2. MEASUREMENT (Continued)

2.1 NAESB WGQ Flowing Gas Standards. (Continued)

NAESB WGQ 2.3.27: "Allocated quantities and imbalances should be

expressed in the same units as the nominated quantities."

NAESB WGQ 2.3.31: "No imbalance penalty should be imposed when a

prior period adjustment applied to the current period causes or

increases a current month penalty."

NAESB WGQ Flowing Gas Related Standards 2.2.2, 2.2.3, 2.3.29,

2.3.30, and 2.3.32 through 2.3.50 (Version 1.6, July 31, 2002) are

incorporated by reference.

2.2 Unit of Volume. The unit of Volume for the purpose of measurement

will be one Cubic Foot of Gas. The readings and registrations of

the measuring equipment hereinafter provided for and

determinations of Total Heating Value will be computed in terms of

such Volumes.

2.3 Factors Considered in Computation. To determine the Volume of Gas

delivered, required factors such as pressure, temperature,

specific gravity and deviations from Boyle's Law will be reflected

in accordance with the American Gas Association Bulletin Number 3

and any modifications and amendments thereof, and applied in a

practical manner.

2.4 Determination of Dekatherms Received or Delivered. The number of

Dekatherms received or delivered during any Day at a Receipt or

Delivery Point will be determined by multiplying the number of

cubic feet of Natural Gas received or delivered on such Day at

such point by the Total Heating Value for that Day and by dividing

the total so obtained by 1,000,000.

2.5 Assumed Atmospheric Pressure. The absolute atmospheric pressure

used for Volume calculations will be assumed to be a specific

pressure determined by calculations based on the actual elevation

above sea level at the site of the meter rounded off to the

nearest one hundredth of a pound.