Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 05/01/2002, Docket: RP01-190-002, Status: Effective

First Revised Sheet No. 506 First Revised Sheet No. 506 : Effective

Superseding: Original Sheet No. 506

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE I - DEFINITIONS (Continued)

1.26 "Reservation Rate" shall mean a unit rate per Dth of DMDQ as provided in

Exhibit C to the Transportation Service Agreement.

1.27 "Therm" shall mean 100,000 Btu. The terms "Dekatherm" and "MMBtu" shall

each mean 10 therms (1,000,000 Btu).

1.28 "Thermally Equivalent" shall mean an equal number of Btu's. The

determination of Thermally Equivalent Quantities shall be accomplished

by multiplying the unit of measurement, as provided in Section 7.2.5 of

Article VII, by the Total Heating Value adjusted to the standard

conditions of the measured volumes.

1.29 "Total Heating Value" shall mean the number of Btu's liberated by the

complete combustion of one Cubic Foot of Gas. The average Total Heating

Value in any Month shall be the volume weighted average of the Total

Heating Values for each Day during such Month, adjusted to reflect the

actual water vapor content of the Gas delivered.

1.30 "Transportation" shall mean the receipt of Gas of Shipper at input

points on Transporter's transmission system (referred to as "Receipt

Point(s)"), and the delivery of Thermally Equivalent Quantities by

Transporter to Shipper or for Shipper's account at delivery points on

Transporter's transmission system (referred to as "Delivery Point(s)").

1.31 Transportation Maximum Daily Quantity or TMDQ: the Quantity reflected in

a Shipper's Transportation Service Agreement, (exclusive of fuel used

and lost and unaccounted-for gas), expressed in Dekatherms, that

Transporter is obligated to receive for Transportation from Shipper on

any Day at the Receipt Points, and transport and deliver on any Day to

the Delivery Points specified in Shipper's Transportation Service

Agreement. For agreements executed on an Mcf basis, Transporter will

convert the MDQ to a TMDQ using the methodology set out in Section 25 of

the General Terms and Conditions of this tariff.

1.32 "Transportation Rate" shall mean a unit rate per Dth of Gas transported

by Transporter each month as provided in Exhibit C to the Transportation

Service Agreement.

1.33 "Volume" shall mean the number of units of gas, either specified in Mcf

or Dth.