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. 504 Second Revised Sheet No. 504

Superseding: First Revised Sheet No. 504

. RATE SCHEDULE CH-1 .

Kern River Firm Transportation Services

(Continued)

ARTICLE I - DEFINITIONS (Continued)

1.9 "Cubic Foot of Gas" shall mean the volume of Gas which, at a temperature

of 60 degrees Fahrenheit and at a pressure of 14.73 Psia, occupies one

cubic foot of space.

1.10 "Day": "Standard time for the gas day should be 9 a.m. to 9 a.m.

(central clock time)." NAESB WGQ 1.3.1

1.11 "FERC" or "Commission" shall mean the Federal Energy Regulatory

Commission or any federal commission, agency, or other governmental

body or bodies succeeding to, lawfully exercising or superseding any

powers which, as of the date hereof, are exercisable by the Federal

Energy Regulatory Commission.

1.12 "Firm Service" shall mean a service that is not subject to a prior claim

by another customer or another class of service and receives the same

priority as any other class of firm service.

1.13 "Gas" or "Natural Gas" shall mean Natural Gas from Gas wells and

casinghead Gas produced with crude oil, consisting essentially of

methane. Such Gas may be either residue Gas resulting from the

processing of either Gas well Gas or casinghead Gas or both, or

synthetic Gas either mixed or unmixed with other Gas. For the purpose

of determining whether Gas is in conformity with the terms of this Rate

Schedule, Article VI shall apply.

1.14 (Reserved)

1.15 "Incremental Facility Charge" shall mean a charge which shall reflect

incremental capital costs of the facilities, depreciation, return,

taxes, operation and maintenance and administrative and general expenses

associated with incremental capacity constructed in accordance with

Section 3.1 herein.