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. 93 Fifth Revised Sheet No. 93

Superseding: Fourth Revised Sheet No. 93

. GENERAL TERMS AND CONDITIONS .

(Continued)

5. INVOICING AND PAYMENT

5.1 NAESB WGQ Invoicing Standards. NAESB WGQ Invoicing Related

Standards 3.3.1 through 3.3.13, 3.3.15 through 3.3.18, and 3.3.20

through 3.3.26 (Version 1.8, September 30, 2006) are incorporated

by reference.

5.2 Invoicing. NAESB WGQ 3.3.14: "The imbalance statement should be

rendered prior to or with the invoice, and the transportation

invoice should be prepared on or before the 9th business day after

the end of the production month. Rendered is defined as

postmarked, time-stamped, and delivered to the designated site."

When information necessary for invoicing purposes is in the

control of Shipper, Shipper shall furnish such information to

Transporter on or before the fifth Business Day of each Month.

NAESB WGQ 2.3.7: "The cutoff for the closing of measurement is 5

business days after business month." NAESB WGQ 2.3.28:

"Imbalance statements should be generated at the same time or

prior to the generation of the transportation invoice." Both

Transporter and Shipper shall have the right to examine, at

reasonable times, the books, records and charts to the extent

necessary to verify the accuracy of any statement, charge or

computation made pursuant to the provisions hereof.

5.3 Payment. Shipper will pay Transporter for the service

rendered during the preceding Month as invoiced by Transporter by

the earlier of (i) the 25th day of each Month or (ii) ten (10)

days after the receipt by Shipper of Transporter's invoice. Such

payment will identify the invoice number and be made in

immediately available funds on or before the due date to a

depository designated by Transporter. If the payment due date

falls on a day that the designated depository is not open in the

normal course of business, to receive Shipper's payment, then

Shipper's payment will be made on or before the Business Day prior

to the payment due date that such depository is open in the normal

course of business.