Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 05/01/2002, Docket: RP01-190-002, Status: Effective

First Revised Sheet No. 609 First Revised Sheet No. 609 : Effective

Superseding: Original Sheet No. 609

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE II - GAS TO BE TRANSPORTED AND CHARACTER OF SERVICE

2.1 DMDQ and Associated TMDQ. Subject to the terms, conditions and

limitations hereof, the DMDQ shall be as provided for in the

Transportation Service Agreement between Transporter and Shipper, and

the associated TMDQ will be calculated using the methodology set out in

Section 25 of the General Terms and Conditions of this tariff.

2.2 Character of Service.

2.2.1 Firm Transportation Service. Service rendered hereunder shall

consist of:

(a) The receipt on any Day by Transporter for the account of

Shipper of Gas up to Shipper's entitlement at the Receipt

Point(s) plus the quantities for fuel use and lost and

unaccounted for Gas that Shipper is obligated to provide

under Article III herein;

(b) The Transportation of Gas up to Shipper's TMDQ, on a Firm

Service basis, through Transporter's System for the account

of Shipper; and

(c) The delivery on such Day by Transporter of Gas in Thermally

Equivalent quantities (less quantities of fuel use and lost

and unaccounted for Gas furnished in-kind by Shipper

pursuant to Section 3.3 herein) to Shipper or for the

account of Shipper at the Delivery Point(s).

2.2.2 Authorized Overrun Service. In the event that Shipper requests

Transportation of a quantity of Gas on any Day that is greater

than its TMDQ and imbalance adjustments set out in Section 4.2.1

herein, Transporter shall provide such Transportation on an

interruptible basis to the extent that capacity is available,

pursuant to Article XIV herein.