Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 05/01/2002, Docket: RP01-190-002, Status: Effective

Original Sheet No. 188 Original Sheet No. 188 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

25. MCF TO DTH CONVERSION METHODOLOGY (Continued)

25.4 TMDQ. (Continued)

If a Shipper does not flow gas under its Transportation Service

Agreement during the twelve-month period from October 1, 2000

through September 30, 2001, Transporter will determine Shipper's

TMDQ by multiplying Shipper's MDQ by the weighted average Btu

value of gas at the primary Receipt Points listed on Shipper's

Transportation Service Agreement (in proportion to Shipper's

entitlements at each Receipt Point) during the twelve-month period

from October 1, 2000 through September 30, 2001, divided by 1000.

a. Monthly Adjustments to TMDQ. Transporter will review

Shipper's weighted average Btu value each Month, and

Shipper's ongoing right to receive firm transportation will

be adjusted, if necessary, in accordance with the following:

(1) Commencing on the effective date of a Shipper's

conversion and continuing on a monthly basis

thereafter, Transporter will compare the current

average Btu value of Shipper's gas (the weighted

average Btu per cubic foot of gas that flowed under

Shipper's Transportation Service Agreement during the

previous month) to Shipper's base average Btu. If

Shipper's current average Btu value deviates by 5 Btu

or more from Shipper's base average Btu value,

Transporter will adjust Shipper's TMDQ to be equal to

the product of Shipper's MDQ and Shipper's current

average Btu per cubic foot, divided by 1000.

(2) Any adjusted TMDQ established pursuant to this Section

will become effective on the first day of the month

following Transporter's notification to Shipper and

will be subject to further monthly adjustments as set

forth in this Section. Transporter will notify any

affected Shippers of the adjustments no less than

seven calendar days before the beginning of the month

that the adjusted TMDQ is to become effective.