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

Second Revised Sheet No. 131 Second Revised Sheet No. 131

Superseding: First Revised Sheet No. 131

. GENERAL TERMS AND CONDITIONS .

(Continued)

13. SCHEDULING OF RECEIPTS AND DELIVERIES (Continued)

13.4 Allocation of Receipts. (Continued)

(b) In the absence of a methodology set forth in 13.4(a),

Shipper will cause the Interconnect Operator at the Receipt

Point to notify Transporter of the pre-determined allocation

("PDA") methodology to be utilized in determining actual

receipts among all Shippers scheduled to receive service at

the Receipt Point. Such notification may be submitted

electronically to Transporter's Designated Site or, if

mutually agreed between Transporter and Interconnect

Operator, by other modes of communication. NAESB WGQ 2.3.5:

"The upstream or downstream party providing the point

confirmation should submit the pre-determined allocation to

the allocating party after or during confirmation and before

start of gas day." Such PDA will be effective for the term

specified in the PDA agreement, provided that the term may

not cover a period of less than one Day. The chosen

methodology must allocate receipts, to the maximum extent

possible, based upon confirmed nominations.

(c) In the absence of methodology set forth in 13.4 (a) or (b)

above, Transporter will rely on its default methodology of

allocating quantities to all Shippers. NAESB WGQ 2.3.18:

"The types of allocation methodologies is a list from which

two parties may agree. If the two parties cannot agree upon

an allocation methodology, pro rata based upon confirmed

nominations should be used as the default method. The party

responsible for custody transfer (the party performing the

measurement function) should provide the allocation."