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. 547 Third Revised Sheet No. 547 : Effective

Superseding: Second Revised Sheet No. 547

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RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE XVII - RECEIPT AND DELIVERY POINTS AND PRESSURES (Continued)

17.3 Delivery Point(s). (Continued)

Entitlement at any particular Primary Delivery 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 Delivery Point Entitlement

at any one or more of the Primary Delivery Points contained in its

Transportation Service Agreement. Exhibit "B" shall be amended as

necessary to reflect any changes in Shippers utilization of its

Primary Delivery Point(s) which is 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 to Secondary Delivery

Points. The Secondary Delivery Points for Gas transported by

Transporter under this Rate Schedule shall be all other points at

which Transporter is authorized to deliver Gas from 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 Delivery Point Entitlement at a

Primary Delivery Point shall be available to Shipper on a

Secondary Delivery 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.