Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Third Revised Sheet No. 604 Third Revised Sheet No. 604 : Effective

Superseding: Second Revised Sheet No. 604

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RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE I - DEFINITIONS (Continued)

1.8 "Composite Gas Stream" shall mean the composite of all Gas receipts

and/or nominations from all shippers for transportation by Kern River.

Composite Gas Stream shall be the theoretical gas stream that will

result from the combination of all gas receipts from all shippers as

determined by a computer model that utilizes analytical and flow data

generated at each of the Receipt Points. The computer model determines

what the Composite Gas Stream composition will be on a feed forward

basis.

1.9 "Contract Year" shall mean a period of 12 consecutive Months beginning

with the Month next following the Commencement Date, and each successive

12 Month period thereafter.

1.10 "Cubic Foot of Gas" shall mean the volume of Gas which, at a temperature

of 60 degrees Fahrenheit and at a pressure of 14.73 Psia, occupies one

cubic foot of space.

1.11 "Day": "Standard time for the gas day should be 9 a.m. to 9 a.m.

(central clock time)." NAESB WGQ 1.3.1.

1.12 "Dekatherm" shall mean 1,000,000 Btu.

1.13 "Delivery Point(s)" shall mean the point(s) on Transporter's System at

which Transporter delivers Gas to Shipper or for Shipper's account.

Delivery Points shall be either Primary Delivery Points, which shall be

those set forth on Exhibit "B" to the Transportation Service Agreement,

as amended from time to time, or Secondary Delivery Points, which shall

be all other points at which Transporter is authorized to deliver Gas

from Transporter's System, as 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 TMDQ shall be considered

Authorized Overrun Service.