Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 08/01/2009, Docket: RP09-723-000, Status: Effective

Second Revised Sheet No. 603 Second Revised Sheet No. 603

Superseding: First Revised Sheet No. 603

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE I - DEFINITIONS

1.1 "Annual Charge Adjustment" Surcharge means the surcharge assessed and

required by the FERC on Transportation of Natural Gas under Section 3401

of the Omnibus Reconciliation Act of 1986, 42 U.S.C.A. Section 7178

(Supp. 1987), adjusted to Transporter's pressure base and heating value.

1.2 "Authorized Overrun Rate" shall mean a charge as provided for in Section

3.2.3 herein and shall be equal to Shipper's Authorized Overrun Rate as

set forth from time to time on Exhibit "C" to the Transportation Service

Agreement between Transporter and Shipper.

1.3 "Authorized Overrun Service" shall mean a service in addition to Firm

Service, as set forth in Section 2.2.2 herein.

1.4 "Billing Month" shall mean that Month of service hereunder which

immediately precedes the Month in which Transporter is obligated to

render a bill for such service.

1.5 "Business Day": "Business Day is defined as Monday through Friday,

excluding Federal Banking Holidays for transactions in the U.S., and

similar holidays for transactions occurring in Canada and Mexico." NAESB

WGQ 3.2.1.

1.6 "Btu": "Standardize the reporting basis for Btu as 14.73 psia and 60

degrees F (101.325 kPa and 15 degrees C, and dry). Standardize the

reporting basis for gigacalorie as 1.035646 Kg/cm2 and 15.6 degrees C

and dry. Standardize the reporting basis for gas volumes as cubic foot

at standard conditions of 14.73 psia, 60 degrees, F and dry. For gas

volumes reported in cubic meters, the standard conditions are

101.325 kPa, 15 degrees C, and dry." NAESB WGQ 2.3.9

1.7 "Commencement Date" shall mean that date on which Transporter certifies

in writing that it is capable of receiving into Transporter's System at

the Receipt Point(s) and transporting to the Delivery Point(s) on an

ongoing basis the full Quantity of Gas tendered daily by Shipper for

transportation (within Shipper's TMDQ) on such Day. Transporter shall

provide Shipper with at least 150 days advance written notice of the

Commencement Date.