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. 132 Third Revised Sheet No. 132

Superseding: Second Revised Sheet No. 132

. GENERAL TERMS AND CONDITIONS .

(Continued)

13. SCHEDULING OF RECEIPTS AND DELIVERIES (Continued)

13.5 Allocation of Deliveries.

Unless prohibited by applicable law or regulation, the quantities

delivered by Transporter at any Delivery Point will be allocated

among Shippers and services as follows:

(a) In accordance with any allocation procedures specifically

agreed to by Transporter and the Interconnect Operator of

Delivery Point(s) as set forth in the Operational Balancing

Agreement; 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.

(b) In the absence of a methodology set forth in 13.5(a) above,

Shipper will cause the Interconnect Operator at the Delivery

Point to notify Transporter of the pre-determined allocation

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

deliveries among all Shippers and services scheduling

service at such Delivery Point. Such notification may be

submitted electronically to Transporter's Designated Site

or, if mutually agreed between Transporter and Shipper, by

other modes of communication. NAESB WGQ 2.3.5: "The upstream

or downstream party providing the point confirmation should

submit the PDA to the allocating party after or during

confirmation and before the start of the gas day." Such PDA

will be effective for the term specified in the PDA

agreement provided that such term may not cover a period of

less than one Day. The chosen methodology must allocate

deliveries, to the maximum extent possible, based upon

confirmed nominations.

(c) In the absence of a methodology as described in 13.5(a) or

(b) above, Transporter may 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."