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. 524 Original Sheet No. 524 : Effective

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE VI - QUALITY (Continued)

6.5 Failure to Conform. (Continued)

(3) Shipper shall reduce the non-conforming component to

the maximum allowable concentration in 6.5(b)(ii)(2)

above by either replacing nominated or existing Gas

deliveries to Transporter with Gas containing less of

the non-conforming component, or by reducing

nominations or deliveries of non-conforming Gas until,

inclusive of the reductions of non-conforming

components similarly required of any other non-

conforming shippers, the composition of the Composite

Gas Stream is again calculated to contain 93% or less

of the maximum allowable quality specifications of

Section 6.1.

(4) Should Shipper fail to take adequate corrective action

to comply with its obligation in Section 6.5(b)(ii)(3)

to reduce the nonconforming component, Transporter

shall have the right to curtail receipts of non-

conforming Gas from Shipper as determined in Section

6.5(b)(ii)(2) above.

(5) Transporter shall promptly notify all shippers who

have suspended deliveries of Gas, replaced volumes of

Gas, or had volumes of Gas curtailed pursuant to this

Section 6.5(b), when the composition of the Composite

Gas Stream is again calculated to contain 93% or less

of the maximum allowable quality specifications of

Section 6.1.

(c) Continuation of Obligation to Pay. In the event Transporter

refuses to accept Gas tendered by Shipper because such Gas does

not conform to the specifications set forth herein, Shipper shall

not be relieved of its obligation to pay any Reservation Charge

provided for in Shipper's Transportation Service Agreement.