Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/01/2000, Docket: RP00-288-000, Status: Effective

Original Sheet No. 88 Original Sheet No. 88 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

4. QUALITY (Continued)

4.5 Failure to Conform. (Continued)

(b) Notwithstanding the foregoing, however, in the event the

provisions of Section 4.3 are in effect, the following

procedures will apply:

(1) When the calculated quality of the Composite Gas

Stream approaches 90% of the allowable maximums for

those Gas components whose specifications are subject

to blending, then Transporter will notify all Shippers

whose Gas does not conform with Section 4.2.

(2) When the calculated quality of the Composite Gas

Stream equals or exceeds 95% of the allowable maximums

for those Gas components whose specifications are

subject to blending, Transporter will immediately

notify all Shippers whose Gas does not conform that

Transporter will commence curtailing receipt of their

Gas in the following manner:

(i) Transporter will determine which Gas nominations

or receipts do not conform with Section 4.2.

For each Shipper whose Gas nominations or

deliveries to Transporter do not conform with

Section 4.2, Transporter will identify the

Quantity of the Gas component that is in excess

of the limits set forth in Section 4.2, compute

a total thereof for all Shippers, and calculate

the percentage of said total for each Shipper.

(ii) The calculated percentage will be used to

determine the Quantity of non-conforming

component that each of the non-conforming

Shippers must eliminate from its Gas nominations

and/or deliveries, in order to bring said

Composite Gas Stream back to 93% of the quality

specifications, of Section 4.2. The required

reduction of the non-conforming component will

be calculated on the assumption that Shipper