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. 523 Original Sheet No. 523 : Effective

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE VI - QUALITY (Continued)

6.5 Failure to Conform. (Continued)

(1) Transporter shall determine which Gas nominations or

receipts do not conform with Section 6.1. For each

Shipper, whose Gas nominations or deliveries to

Transporter do not conform with Section 6.1,

Transporter shall identify the quantity of the Gas

component that is in excess of the limits set forth in

Section 6.1, compute a total thereof for all shippers,

and calculate the percentage of said total for each

Shipper.

(2) The calculated percentage shall be used to determine

the quantity of non-conforming component that each of

the non-conforming shippers must eliminate from its

Gas nominations and/or deliveries, in order to bring

said Composite Gas Stream back to 93% of the quality

specifications described in Section 6.1. The required

reduction of the non-conforming component will be

calculated on the assumption that Shipper will replace

its nominations or deliveries of out of compliance Gas

by the required reduction volume using gas containing

none of the non-conforming component. The required

reduction of the non-conforming component, as well as

the newly calculated maximum allowable concentration

of the non-conforming component in Shipper's Gas

deliveries to Transporter, shall be communicated to

each of the non-conforming shippers.