Kern River Gas Transmission Company

Second Revised Volume No. 1

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

First Revised Sheet No. 517 First Revised Sheet No. 517 : Effective

Superseding: Original Sheet No. 517

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE V - OPERATING PROCEDURES (Continued)

5.6 Make-Up Rights. (Continued)

(c) Should any other shipper have similar make-up rights then

Transporter shall honor these rights along with Shipper's rights

on a pro rata basis such that Transporter shall receive from each

shipper Quantities, inclusive of fuel use and lost and unaccounted-

for Gas, that bear the same ratio to the total capacity available

for make-up rights as that shipper's TMDQ bears to the aggregate

TMDQ of all shippers requesting make-up rights on that Day.

(d) If Shipper's inability to utilize its TMDQ is the result of an

event attributable to Transporter's inability to deliver Gas to

Shipper or failure to meet delivery specifications under Section

6.6 herein, and Shipper received a reduction to its Reservation

Rate, then the charge for this make-up service shall equal the

reduction to Reservation Rate received by Shipper and the

Transportation Rate set forth in Exhibit C to the Transportation

Service Agreement. If Shipper received no reduction to the

Reservation Rate, the charge for this service shall be the

Transportation Rate set forth in Exhibit C to the Transportation

Service Agreement.