Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 04/20/2009, Docket: RP09-466-000, Status: Effective

Third Revised Sheet No. 130 Third Revised Sheet No. 130

Superseding: Second Revised Sheet No. 130

. GENERAL TERMS AND CONDITIONS .

(Continued)

13. SCHEDULING OF RECEIPTS AND DELIVERIES (Continued)

13.4 Allocation of Receipts.

Unless prohibited by applicable law or regulation, the quantities

received by Transporter at any Receipt Point will be allocated

among Shippers and services as follows:

(a) In accordance with allocation procedures specifically agreed

to by Transporter and the Interconnect Operator of the

Receipt Point(s), as set forth in an Operational Balancing

Agreement (OBA), provided; however, Transporter will not be

required to enter into agreements with such Interconnect

Operators if they are not creditworthy in accordance with

the provisions set forth in Section 29 of the General Terms

and Conditions of this tariff. (Any OBA is a contract

between two parties which specifies the procedures to manage

operating variances at an interconnect.)