Kern River Gas Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2000, Docket: RP00-288-000, Status: Effective

Original Sheet No. 617 Original Sheet No. 617 : Effective

RATE SCHEDULE UP-1

Kern River Firm Transportation Services

(Continued)

ARTICLE IV - OPERATING PROCEDURES (Continued)

4.2 Balancing of Gas. (Continued)

nature may be required (including suspension or reduction of

service to Shipper) to correct any imbalances which threaten

the operation or integrity of Transporter's System,

including maintenance of service to other shippers.

(d) Transporter shall not apply the provisions of this Section

4.2.1 to Shipper in a manner less favorable than Transporter

applies same or similar provisions to other shippers.

4.2.2 At End of Agreement. Transporter and Shipper agree to correct any

cumulative imbalances in receipts and deliveries as soon as

practicable. In the event that at the end of the term of the

Transportation Service Agreement there are cumulative imbalances

in receipts and deliveries, Transporter and Shipper shall correct

such cumulative imbalances as soon as practicable after the end of

the term of the Transportation Service Agreement, as provided in

Section 7.3. All calculations of balances and imbalances and

corrections under this Section 4.2.2 shall be made on a Thermally

Equivalent basis.

4.2.3 Uniform Deliveries. Transporter and Shipper shall undertake to

maintain receipts and deliveries on a uniform daily basis to the

maximum extent practicable, subject to the provisions of this Rate

Schedule as to scheduling and balancing.

4.3 Records of Scheduled Quantities. Transporter shall keep accurate

records of the quantities of Gas scheduled for Transportation and any

imbalances, which records shall be made available to Shipper at its

request. If Shipper's Gas is commingled with other Gas at the Receipt

Point(s) or at the Delivery Point(s), the scheduling arrangements