Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Original Sheet No. 89 Original Sheet No. 89 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

4. QUALITY (Continued)

4.5 Failure to Conform. (Continued)

will replace its nominations or deliveries of

out of compliance Gas by the required reduction

Volume using Gas containing none of the non-

conforming component. The required reduction,

as well as the newly calculated maximum

allowable concentration of the non-conforming

component, will be communicated to each of the

non-conforming Shippers.

(iii) Shipper will reduce the non-conforming component

by either replacing nominated or existing Gas

deliveries to Transporter with Gas containing

less of the non-conforming component or by

reducing nominations or deliveries of non-

conforming Gas until, inclusive of the

reductions of non-conforming components

similarly required of any other non-conforming

Shippers, the composition of the Composite Gas

Stream is again calculated to contain 93% or

less of the maximum allowable quality

specifications of Section 4.2.

(iv) Should Shipper fail to take adequate corrective

action to comply with its obligation in Section

4.5(b)(2)(iii) to reduce the non-conforming

component, Transporter will have the right to

curtail receipts of non-conforming Gas from

Shipper as determined in Section 4.5(b)(2)(ii)

above.

Transporter refuses to accept Gas tendered by Shipper

because such Gas does not conform to the

specifications set forth herein, Shipper will not be

relieved of its obligation to pay any Reservation

Charge provided for in Shipper's Transportation

Service Agreement.