Kern River Gas Transmission Company

Second Revised Volume No. 1

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Effective Date: 01/01/2004, Docket: RP04- 68-000, Status: Effective

Second Revised Sheet No. 611 Second Revised Sheet No. 611 : Effective

Superseding: First Revised Sheet No. 611

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE III - TRANSPORTATION RATES AND CHARGES (Continued)

3.2 Transportation Charges. (Continued)

3.2.1 Monthly Demand Charge Amount. Subject to the provisions

contained in Sections 9.1 and 13.1 below, an amount calculated

by multiplying Shipper's DMDQ, by (i) the applicable Daily

Reservation/Demand Rate shown on Sheet No. 5 and multiplying the

result by (ii) the number of days in the Month.

3.2.2 Monthly Commodity Charge Amount. An amount calculated by

multiplying the Commodity Rate shown on Sheet No. 5 by each Dth

of Gas actually received by Transporter from Shipper each Day

during the Billing Month for Firm Service pursuant to Section

2.2.1 herein less fuel use and lost and unaccounted for Gas.

3.2.3 Authorized Overrun Charge Amount. An amount calculated by

multiplying the Authorized Overrun Rate shown on Sheet No. 5 by

each Dth of Gas actually received by Transporter from Shipper

each Day during the Billing Month in excess of Shipper's TMDQ

and imbalance adjustments as set out in Section 4.2.1 herein,

for Authorized Overrun Service pursuant to Section 2.2.2 herein,

less fuel use and lost and unaccounted for Gas.