Kern River Gas Transmission Company

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 09/04/2009, Docket: RP09-860-000, Status: Effective

Sixth Revised Sheet No. 497 Sixth Revised Sheet No. 497

Superseding: Fifth Revised Sheet No. 497

. .

NEGOTIATED RATE AGREEMENTS (Continued)

FOOTNOTES: (Continued)

---------

6/ For scheduled Transportation at receipt and delivery points not shown on

Exhibit "A" and/or scheduled Transportation in excess of Shipper's Maximum

Daily Quantity, Shipper will pay Transporter a Total Rate per Dth that is

equivalent to the sum of Transporter's maximum recourse reservation rate and

maximum commodity rate under Rate Schedule KRF-1 for incremental rate service

related to the 2003 Expansion Project, plus all applicable surcharges, plus an

Index Spread Adjustment ("ISA")(based on the Daily Price Survey Flow Date spot

price reported in Gas Daily for the day of scheduled Transportation),

calculated as follows:

Total Rate = Maximum Rate + all applicable surcharges + ISA

Where: Maximum Rate = the sum of the maximum recourse reservation

rate and the maximum commodity rate under

Rate Schedule KRF-1 for incremental rate

service related to the 2003 Expansion

Project.

ISA = [(Others "SoCal Gas" - Rockies "Kern River,

Opal Plant")-(Maximum Rate)] x .50

In no event will the Total Rate, less applicable surcharges, be less than the

Maximum Rate.

7/ Shipper will pay Transporter daily reservation/demand charges on a total

quantity of 91,000 Dth per day, determined as follows:

1. For all quantities not scheduled, up to 91,000 Dth per day, Shipper will

pay Transporter a discounted firm daily reservation/demand rate of $0.09

per Dth for the entire term of the agreement.

2. For scheduled quantities from the Goshen receipt point to the Lake Side

or West Valley delivery points, Shipper will pay Transporter a discounted

firm daily reservation/demand backhaul rate of $0.09 per Dth for the entire

term of the agreement.

3. For scheduled quantities from the Goshen receipt point to all delivery

points north of the Goshen receipt point from February 1, 2007 through

January 31, 2008, Shipper will pay Transporter a discounted firm daily

reservation/demand backhaul rate of $0.09 per Dth.