Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 09/06/2004, Docket: RP04-444-000, Status: Effective

First Revised Sheet No. 189 First Revised Sheet No. 189 : Effective

Superseding: Original Sheet No. 189

. GENERAL TERMS AND CONDITIONS .

(Continued)

25. MCF TO DTH CONVERSION METHODOLOGY

25.4 TMDQ. (Continued)

b. Emergency Adjustments to TMDQ. If, on any given day, the

gas flowing under Shipper's Transportation Service Agreement

has a weighted average Btu per cubic foot that deviates by

15 Btu or more from Shipper's base average Btu value and

Transporter determines that it is in jeopardy of being

unable to meet all of its firm service commitments,

Transporter will calculate an emergency-adjusted TMDQ to be

effective at the beginning of the next gas day. Such

emergency-adjusted TMDQ will be equal to the product of

Shipper's MDQ and Shipper's weighted average Btu per cubic

foot for the gas day on which such emergency adjustment is

calculated, divided by 1000. Transporter will notify

affected Shipper immediately of any adjustment pursuant to

this Section, which will remain effective until Shipper's

daily weighted average Btu per cubic foot is within 5 Btu of

Shipper's base average Btu, at which time Transporter will

revise the TMDQ to be equal to Shipper's MDQ multiplied by

its base average Btu factor.

c. TMDQ for Capacity Releases. If a Releasing Shipper elects

to release all or a portion of its rights to service

pursuant to a Transportation Service Agreement executed on

an Mcf basis, such Shipper will specify the DMDQ to be

released on its Release Request. Transporter will determine

the TMDQ associated with the release as follows:

(1) the DMDQ to be released will be divided by the

weighted average, system-wide Btu factor that was used

to convert releasing Shipper's MDQ to a DMDQ in order

to establish an assumed MDQ for the replacement

Shipper; and

(2) the replacement Shipper's assumed MDQ will be

multiplied by releasing Shipper's base average Btu

factor, to determine replacement Shipper's TMDQ.

The TMDQ acquired by the replacement Shipper will be subject

to monthly and/or emergency adjustments pursuant to this

Section, using the base average Btu of the releasing Shipper

and the assumed MDQ of the replacement Shipper.