Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 08/01/2009, Docket: RP09-723-000, Status: Effective

Third Revised Sheet No. 124 Third Revised Sheet No. 124

Superseding: Second Revised Sheet No. 124

. GENERAL TERMS AND CONDITIONS .

(Continued)

13. SCHEDULING OF RECEIPTS AND DELIVERIES (Continued)

13.1 Nomination Process. (Continued)

(5) the Service Requester is told by its

Transportation Service Provider that the

downstream Service Requester did not have the

market or submit the nomination.

This information should be imparted to the Service

Requester on the Scheduled Quantity document."

(e) Ranking of Service. NAESB 1.3.23: "Ranking should be

included in the list of data elements. Transportation

service providers should use service requester provided

rankings when making reductions during the scheduling

process when this does not conflict with tariff-based

rules."

13.2 Scheduling Process.

(a) Scheduling Priorities. The Quantity of Gas that Transporter

is obligated to deliver on any Day will be limited to the

Quantity of Gas received by Transporter for Shipper's

account on such Day as adjusted for fuel used and lost and

unaccounted-for gas. Scheduled deliveries by Transporter for

a Shipper will be subject to confirmation of scheduled

receipts by Transporter for Shipper's account, except as

provided in Section 13.2(b). Transporter will schedule

nominated Quantities in the following sequence: first, by

mainline capacity; and, second, by Receipt Points and

Delivery Points, as follows:

(1) Mainline Capacity. Mainline capacity will be

allocated in the priority and sequence described

below:

(i) To Shippers nominating Firm Transportation

Service.

If mainline capacity is constrained and

Transporter cannot accommodate the total

Quantities nominated, then available capacity

will be allocated as follows: