Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Fifth Revised Sheet No. 110A.1 Fifth Revised Sheet No. 110A.1

Superseding: Fourth Revised Sheet No. 110A.1

. .

GENERAL TERMS AND CONDITIONS

(Continued)

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

12.12 Electric Compressor Fuel Surcharge.

(a) Applicability. An electric compressor fuel surcharge is

applicable to all Gas that flows from any receipt point on

Transporter's wholly-owned system to delivery points

downstream of the Daggett Compressor into the facilities

jointly owned by Transporter and Mojave Pipeline Company.

Effective January 1, 2006, Transporter and Mojave Pipeline

Company will share the power costs associated with the

Daggett Compressor, pursuant to either the terms and

conditions of the August 29, 1989 Construction, Operation

and Maintenance Agreement, as amended, or the September 30,

2004 Daggett Term Sheet, whichever is effective. Shipper

will reimburse Transporter for its share of Transporter's

portion of the electricity costs incurred at the Daggett

Compressor (including all associated refunds, surcharges,

billing adjustments and interest), by paying the electric

compressor fuel surcharge applicable to either rolled-in

rate or incremental rate service on the 2003/2010 Expansions

on the Quantity of Gas scheduled for Shipper by Transporter

through the Daggett Compressor.

(b) Surcharge Calculation. The electric compressor fuel

surcharges will be determined annually, to become effective

on April 1 of each year. At least thirty (30) days prior to

the effective date, Transporter will file workpapers with

the Commission calculating the electric compressor fuel

surcharges for the twelve months beginning April 1, and will

also file revised Sheet Nos. 5, 5A and 6, which set forth

the revised surcharges in Transporter's FERC Gas Tariff.