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. 525 Original Sheet No. 525 : Effective

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE VI - QUALITY (Continued)

6.6 Processing Rights. All oil and liquid hydrocarbons separated from the

Gas prior to receipt by Transporter shall remain the property of

Shipper. In the event Shipper does not process or have processed Gas

prior to receipt by Transporter, all liquids or liquefiable hydrocarbons

recovered by Transporter, after receipt of Gas hereunder by Transporter

and prior to delivery of Gas by Transporter to Shipper, shall be and

remain the exclusive property of Transporter.