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. 531 First Revised Sheet No. 531 : Effective

Superseding: Original Sheet No. 531

 

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

 

ARTICLE VIII - TERM OF AGREEMENT

 

8.1 Effective Date and Term. The term of service shall be as provided for

in the Transportation Service Agreement between Transporter and Shipper.

 

8.2 Continuation of Term.

 

(a) At the end of the initial term, Shipper shall have the election to

extend the Agreement for a period up to and including 15 years;

provided, however, if Shipper elects to extend the Agreement, the

Transportation Rates and Charges during such extended period shall

be subject to change at the request of Transporter. If Shipper

elects to extend the Agreement, it shall give Transporter nine

months' prior written notice of its election to extend and of the

period of extension. Within 60 days after receipt of Shipper's

notice, Transporter shall give Shipper written notice of its

desire to establish new Transportation Rates and Charges for the

extended period. If Transporter gives notice of its desire to

establish such new rates, the Transportation Rates and Charges

under the Agreement, as of the date of the beginning of the

extended period of the Agreement, shall be the lowest rate at

which Transporter has agreed to provided firm transportation

service under a contract for such service which (1) was executed

within 18 months prior to the date of Shipper's election to extend

the Agreement and (2) provides for firm transportation of at least

50,000 Dth per Day of Gas for a term of at least five (5) years to

a delivery point or points in the State of California. If at the

time of Transporter's notice of its desire to establish new

Transportation Rates and Charges for the extended period,

Transporter has no contracts for firm transportation service which

meet the criteria of the preceding sentence, then the

Transportation Rates and Charges for the extended period shall be

the applicable rates for firm transportation service stated in

Transporter's FERC Gas Tariff, as changed from time to time