Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 09/06/2004, Docket: RP04-444-000, Status: Effective

Third Revised Sheet No. 545 Third Revised Sheet No. 545 : Effective

Superseding: Second Revised Sheet No. 545

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RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE XVII - RECEIPT AND DELIVERY POINTS AND PRESSURES

17.1 Receipt Point(s).

(a) The Primary Receipt Point(s) at which Transporter will receive Gas

for Transportation are set forth in Exhibit "A" of the

Transportation Service Agreement. Shipper may add Primary Receipt

Points to its Transportation Service Agreement, or increase or

decrease the amount of Shipper's Receipt Point Entitlement at any

particular Primary Receipt Point, subject to the availability of

capacity; provided, however, that in the event of any such

addition or increase Shipper must concurrently relinquish an

equivalent amount of its Receipt Point Entitlement at any one or

more of the Primary Receipt Points contained in its Transportation

Service Agreement. Exhibit "A" shall be amended as necessary to

reflect any changes in Shipper's utilization of its Primary

Receipt Point(s) which are mutually agreed to by the parties in

writing.

(b) Shipper may, subject to Section 16.1 of this Rate Schedule,

nominate and schedule Gas for transportation from Secondary

Receipt Points. The Secondary Receipt Points shall be all other

points at which Transporter is authorized to receive Gas into

Transporter's System and which are listed on the Operationally

Available and Unsubscribed Capacity reports on Transporter's

Designated Site. Capacity in excess of Shipper's Receipt Point

Entitlement at a Primary Receipt Point shall be available to

Shipper on a Secondary Receipt Point basis; provided, however,

that any Quantities scheduled by Shipper for Transportation in

excess of Shipper's Transportation Maximum Daily Quantity shall be

considered Authorized Overrun Service.