Kern River Gas Transmission Company

Second Revised Volume No. 1

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

Second Revised Sheet No. 607 Second Revised Sheet No. 607 : Effective

Superseding: First Revised Sheet No. 607

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RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE I - DEFINITIONS (Continued)

1.32 "Receipt Point(s)" shall mean the point(s) on Transporter's System at

which Transporter receives Gas of Shipper. Receipt Points shall be

either Primary Receipt Points, which shall be those set forth on Exhibit

"B" to the Transportation Service Agreement, as amended from time to

time, or Secondary Receipt Points, which shall be all other points at

which Transporter is authorized to receive Gas into Transporter's

System, as 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.

1.33 "Thermally Equivalent" shall mean an equal number of Btu's. The

determination of Thermally Equivalent Quantities shall be accomplished

by multiplying the unit of measurement, as provided in Section 6.2.5

herein, by the Total Heating Value adjusted to the standard conditions

of the measured Quantities.

1.34 "Total Heating Value" shall mean the number of Btu's liberated by the

complete combustion of one Cubic Foot of Gas at a constant pressure of

14.73 dry psia and temperature of 60 degrees Fahrenheit (101.325 kPa, 15

degrees C., and dry) with air at the same pressure and temperature and

with water formed by combustion condensed to the liquid state. The

average Total Heating Value in any Month shall be the volume weighted

average of the Total Heating Values for each Day during such Month,

adjusted to reflect the actual water vapor content of the Gas delivered

or received.

1.35 "Transportation" shall mean the receipt of Gas of Shipper at Receipt

Point(s), and the delivery of Thermally Equivalent Quantities by

Transporter to Shipper or for Shipper's account (after making allowance

for any requisite fuel and loss reimbursement) at Delivery Point(s).