Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 01/01/2010, Docket: RP10-210-000, Status: Effective

Seventh Revised Sheet No. 109 Seventh Revised Sheet No. 109

Superseding: Sixth Revised Sheet No. 109

. GENERAL TERMS AND CONDITIONS .

(Continued)

12. REIMBURSEMENT OF FUEL USED AND LOST AND UNACCOUNTED-FOR GAS

12.1 NAESB WGQ Fuel Reimbursement Standards. NAESB WGQ Standards

1.3.15, 1.3.16, 1.3.28 through 1.3.31 (Version 1.8, September 30,

2006) are incorporated by reference.

12.2 Transportation rates set forth on Sheet Nos. 5, 5-A, 6 and 7 are

exclusive of fuel used and lost and unaccounted-for gas, which all

Shippers will cause to be furnished in-kind each Day by applying a

fuel reimbursement factor to Receipt Point nominations, as

provided in NAESB 1.3.16. Such fuel reimbursement factor is the

sum of the current compressor fuel factors applicable to either

rolled-in rate service or incremental rate service on the

2003/2010 Expansions for the compressors used in the

Transportation of Shipper's Gas and the current lost and

unaccounted-for gas factor applicable to either system-wide

Transportation (for both rolled-in and incremental rate services)

or Transportation on the High Desert Lateral. The current factors

are posted on Transporter's Designated Site on the Internet no

less than seven calendar days before the beginning of the month.