Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/01/2000, Docket: RP00-288-000, Status: Effective

Original Sheet No. 508 Original Sheet No. 508 : Effective

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE III - EXPANSION OF TRANSPORTER'S SYSTEM AND RATE IMPACT

Third Party Expansion. Shipper shall bear no costs whatsoever,

including fuel, related to the incremental expansion of the Kern River

System, including compression facilities, for third parties unless such

incremental expansion and the allocation of costs thereof results in a

decrease in Shipper's rates set forth in Exhibit C to the Transportation

Service Agreement.