Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 04/09/2010, Docket: RP10-584-000, Status: Effective

Original Sheet No. 499B.4 Original Sheet No. 499B.4

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NEGOTIATED RATE AGREEMENTS (Continued)

FOOTNOTES: (Continued)

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17/ From the commencement of service to October 31, 2010, Shipper's rates

shall be:

Negotiated Daily Reservation/Demand Rate: The Negotiated Daily

Reservation/Demand Rate applicable to any primary or secondary receipt and

delivery points shall be calculated as shown below:

Daily Reservation/Demand Rate = (SoCalGas) - (Kern River, Opal) - $0.1748

Where:

SoCal Gas is equal to the daily gas price shown for SoCalGas in Platt's Gas

Daily, Daily Price Survey, Flow Date midpoint for the day of scheduled

transportation.

The Daily Reservation/Demand Rate will be no less than $0.10 per Dth for all

primary entitlement at delivery points outside of California, or no less than

$0.4686 per Dth for all primary entitlement at delivery points within

California (Minimum Rate). The Minimum Rate will be based on the primary

delivery point(s) shown in the Agreement, not the location of the actual

scheduled deliveries.

If Shipper segments and releases all or a portion of its DMDQ, the Negotiated

Daily Reservation/Demand Rate will be two (2) times the Daily

Reservation/Demand Rate for the entire time period that the capacity is

released.

Negotiated Commodity/Usage Rate: The Negotiated Commodity/Usage Rate is

$0.0044 per Dth for all scheduled deliveries up to Shipper's DMDQ. For

scheduled deliveries above Shipper's DMDQ, the Negotiated Commodity/Usage Rate

will be equal to the Negotiated Daily Reservation/Demand Rate. For the purpose

of calculating the Negotiated Commodity/Usage Rate, scheduled deliveries shall

include combined deliveries on this Agreement and all related segmented

agreements. In addition, Shipper shall pay all applicable commodity surcharges

related to the 2003 Expansion Project, as set forth in Kern River's FERC Gas

Tariff.