Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 08/01/2009, Docket: RP09-723-000, Status: Effective

Second Revised Sheet No. 503 Second Revised Sheet No. 503

Superseding: First Revised Sheet No. 503

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE I - DEFINITIONS

1.1 "Authorized Overrun Rate" shall mean a unit rate per Dth stated in

Exhibit C to the Transportation Service Agreement for Authorized Overrun

Service.

1.2 "Authorized Overrun Service" shall mean a service in addition to Firm

Service as set forth in Section 2.2.2 herein.

1.3 "Billing Month" shall mean that Month of service hereunder which

immediately precedes the Month in which Transporter is obligated to

render a bill for such service.

1.4 "Btu": "Standardize the reporting basis for Btu as 14.73 psia and 60

degrees F (101.325 kPa and 15 degrees C, and dry). Standardize the

reporting basis for gigacalorie as 1.035646 Kg/cm2 and 15.6 degrees C

and dry. Standardize the reporting basis for gas volumes as cubic foot

at standard conditions of 14.73 psia, 60 degrees, F and dry. For gas

volumes reported in cubic meters, the standard conditions are 101.325

kPa, 15 degrees C, and dry." NAESB WGQ 2.3.9

1.5 "Business Day": "Business Day is defined as Monday through Friday,

excluding Federal Banking Holidays for transactions in the U.S., and

similar holidays for transactions occurring in Canada and Mexico."

NAESB WGQ 3.2.1

1.6 "Commencement Date" shall mean that date on which Transporter notifies

Shipper in writing that Transporter is ready to commence the delivery of

Transportation volumes to Shipper.

1.7 "Composite Gas Stream" shall mean the actual or theoretical composite of

all Gas receipts and/or nominations from shippers for transportation by

Kern River. Composite Gas Stream shall be the theoretical gas stream

that will result from the combination of all gas receipts from all

shippers as determined by a computer model that utilizes analytical and

flow data generated at each of the Receipt Points. The computer model

determines what the Composite Gas Stream composition will be on a feed

forward basis.

1.8 "Contract Year" shall mean a period of 12 consecutive Months beginning

with the Month next following the Commencement Date, and each successive

12-Month period thereafter.