Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2000, Docket: RP00-288-000, Status: Effective

Original Sheet No. 550 Original Sheet No. 550 : Effective

RATE SCHEDULE CH-1

Kern River Firm Transportation Services

(Continued)

ARTICLE XIX - MISCELLANEOUS

19.1 (reserved)

19.2 Successors and Assigns. The Transportation Service Agreement shall be

binding upon and inure to the benefit of the parties thereto and their

respective successors and assigns. No assignment or transfer by either

party thereunder shall be made without written approval of the other

party. Such approval shall not be unreasonably withheld. No such

consent of Transporter or Shipper shall be required when an assignment

by Shipper or Transporter is the result of, and part of, a corporate

acquisition, merger or reorganization. Nothing contained in this Rate

Schedule shall prevent either party from pledging, mortgaging or

assigning its rights as security for its indebtedness and either party

may assign to the pledgee or mortgagee (or to a trustee for the holder

of such indebtedness) any money due or to become due under the

Transportation Service Agreement. As between the parties thereto, such

assignment shall become effective on the first Day of the Month

following written notice that such assignment has been effectuated.

19.3 Gas Purchase and Sales. Transporter shall not engage in the purchase of

Natural Gas for sale or resale.

19.4 Deregulation. In the event of deregulation of Transporter so that

Transporter's facilities and rates and charges are no longer subject to

regulation by the FERC or any other governmental authority as a result

of legislation, rulemaking or any other action, the terms and provisions

of this Rate Schedule and the Transportation Service Agreement in effect

on the Day immediately preceding the effective date of such deregulation

shall remain in force and effect until changed or otherwise modified by

mutual agreement of Transporter and Shipper.