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. 326 First Revised Sheet No. 326 : Effective

Superseding: Original Sheet No. 326

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FORM OF FIRM TRANSPORTATION SERVICE AGREEMENT

(Applicable to Transportation Service Under Rate Schedule KRF-L1)

CONTRACT NO. _______

THIS AGREEMENT is made and entered into this _____ day of ______ by and

between KERN RIVER GAS TRANSMISSION COMPANY, a Texas general partnership,

hereinafter called "Transporter," and _________________________________,

hereinafter called "Shipper."

WHEREAS, Shipper has acquired or intends to acquire a supply of Natural Gas

which can be delivered to Transporter's High Desert Lateral and redelivered by

Transporter to Shipper or for Shipper's account at Delivery Points on

Transporter's High Desert Lateral; and

WHEREAS, Shipper desires Transportation service from Transporter in accordance

with Transporter's Rate Schedule KRF-L1, on file with the FERC, as amended

from time to time; and

WHEREAS, Transporter is willing to render such Transportation service;

NOW, THEREFORE, in consideration of the mutual covenants and agreements as

herein set forth, the parties hereto agree as follows:

ARTICLE I - GAS TO BE TRANSPORTED

1.1 Subject to the terms, conditions and limitations hereof, Transporter

agrees to receive from Shipper for Transportation at the Receipt

Point(s) specified in Exhibit "A" hereto, as amended from time to time,

and to transport and deliver Thermally Equivalent Quantities of Natural

Gas to Shipper at the Delivery Point(s) specified in Exhibit "A" hereto,

as amended from time to time, Quantities of Natural Gas, exclusive of

Quantities required for fuel used and lost and unaccounted-for Gas, up

to Shipper's TMDQ, which will be ________ Dth per day. Shipper's DMDQ

is equal to Shipper's TMDQ.

1.2 Shipper will reimburse Transporter for fuel used and lost and

unaccounted-for Gas on an in-kind basis pursuant to the General Terms

and Conditions of Transporter's tariff as filed with the FERC to be

effective on the date Transporter commences service, and as amended from

time to time.