Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 09/01/2002, Docket: RP02-392-000, Status: Effective

Second Revised Sheet No. 608 Second Revised Sheet No. 608 : Effective

Superseding: First Revised Sheet No. 608

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE I - DEFINITIONS (Continued)

1.36 Transportation Maximum Daily Quantity or TMDQ: the Quantity reflected in

a Shipper's Transportation Service Agreement, (exclusive of fuel used

and lost and unaccounted-for gas), expressed in Dekatherms, that

Transporter is obligated to receive for Transportation from Shipper on

any Day at the Receipt Points, and transport and deliver on any Day to

the Delivery Points specified in Shipper's Transportation Service

Agreement. For agreements executed on an Mcf basis, Transporter will

convert the MDQ to a TMDQ using the methodology set out in Section 25 of

the General Terms and Conditions of this tariff.

1.37 "Transporter's System" shall mean that natural gas transmission system

owned by Transporter, extending from a point of interconnection with the

facilities of Northwest Pipeline Corporation (Northwest) in southwestern

Wyoming to terminal points in Kern County, California, as more fully

described in Transporter's application in FERC Docket No. CP89-2048 and

as modified or expanded by Transporter from time to time. As used in

this rate schedule, Transporter's pipeline system does not include the

High Desert Lateral as described in Rate Schedule KRF-L1.

1.38 "Volume" shall mean the number of units of gas, either specified in Mcf

or Dth.