Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 02/01/2006, Docket: RP06-160-000, Status: Effective

Fifth Revised Sheet No. 510 Fifth Revised Sheet No. 510 : Effective

Superseding: Fourth Revised Sheet No. 510

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE IV - TRANSPORTATION RATES AND CHARGES (Continued)

4.1 Charges. (Continued)

4.1.4 Authorized Overrun Charge. An amount computed by multiplying (i)

the Quantity of Gas received by Transporter from Shipper for

Transportation during the month which constitutes Authorized

Overrun Service under Section 2.2.2 herein by (ii) the rate

stated on Sheet No. 5.

4.1.5 The minimum monthly bill shall be the Reservation Charge for each

month, unless Transporter and Shipper mutually agree otherwise.

4.1.6 Discounted Recourse Rates.

(a) Transporter reserves the right to discount at any time the

Recourse Rates for any individual Shipper under any service

agreement without discounting any other Recourse Rates for

that or any other Shipper; provided, however, that such

discounted Recourse Rates will not be less than any

applicable Minimum Rates set forth on Sheet Number 5 of

Transporter's effective tariff, or any superseding tariff.

Such discounted Recourse Rates may apply to specific

Quantities of Gas (such as Quantities above or below a

certain level or all Quantities if Quantities exceed a

certain level), Quantities of Gas transported during

specific time periods, and Quantities of Gas transported

from specific receipt points and/or to specific delivery

points, or within other defined geographical areas. If

Transporter discounts any Recourse Rates to any Shipper,

Transporter will file with the FERC any required reports

reflecting such adjusted rates.